June 15, 2022/Cordros Update

Nigeria’s headline inflation increased by 89bps in May to 17.71% y/y (April: 16.82% y/y) – the highest since June 2021 (17.75% y/y). The outturn is 15bps higher than Cordros’ estimate (17.56% y/y) and 21bps higher than Bloomberg’s median consensus estimate (17.50% y/y). On a month-on-month basis, headline inflation rose by 2bps to 1.78% (April: 1.76% m/m).

Food inflation rose to its highest level in nine months, accelerating by 113bps to 19.50% y/y (April: 18.37% y/y). Notably, pressure was most significant in the prices of Bread and cereals, Food products, Potatoes, yam and other tubers, Wine, Fish, Meat, and Oils. On a month-on-month basis, food inflation increased by 2.01%, relative to the 2.00% m/m recorded in the previous month.

Similarly, the core inflation maintained the previous month’s uptrend, increasing by 72bps to 14.90% y/y (April: 14.18% y/y) – the highest in five years. Pressures were most significant in the prices of Gas, Liquid fuel, Garment, Solid fuel, Cleaning, Repair and Hire of clothing and Passenger transport by road. Compared to the previous month, the core index increased by 65bps to 1.87% m/m in May 2022.