April 20, 2022/InvestmentOne Update

Please click to download our March 2022 Inflation Update

• Inflation in Nigeria continues to run hot as the National Bureau of Statistics revealed that consumer prices for the month of March 2022 rose by 15.92% (y/y), 22bps higher than the 15.70% (y/y) recorded in February. Similarly, on a month-on-month basis, headline inflation also nudged upwards by 11bps to 1.74% (m/m).
• In the same vein, the food sub-index inched up by 17.20% (y/y) in March, 9bps higher than the previous month’s rate of 17.11% (y/y). The month-on-month figures followed suit as it rose by 1.99% (m/m), higher than the 1.87% (m/m) recorded in February.
• However, the core-sub index which strips out prices of volatile agricultural products settled at 13.91% (y/y), 10bps lower than February’s reading (14.01% y/y). Month-on-month, the sub-index stood at 0.98%, lower than the 1.33% recorded in the previous month
• Going forward, we posit that inflationary pressures will continue to trend northwards on the back of the geo-political tensions which if unabated, will continue to propel increase in global prices of both energy products and agricultural commodities