February 18, 2022/InvestmentOne Report

Please click to download our January 2022 Inflation Update

• Inflation resumed its downward trajectory after halting an eight-month consecutive decline in the month of December 2021. This was revealed in the recently released report by the National Bureau of Statistics that headline inflation for the month of January 2022 increased by 15.60% (y/y).
• In a similar trend to headline inflation, the food sub-index rose by 17.13% y/y, 24bps lower than the 17.37% recorded in the previous month.
• The core inflation sub-index, which excludes the prices of volatile agricultural products, remained flat as it rose by 13.87% y/y, the same as in December 2021.  
• Going forward, we opine that for the first quarter of 2022, inflationary pressure will continue to persist, albeit on a decelerating trend on the back of   a higher base effect.