June 17, 2022/InvestmentOne Report
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- In tandem with heightened global inflationary pressures, consumer prices in Nigeria continue to run hot as widely expected. According to the recent report released by the National Bureau of Statistics, headline inflation rose by 17.71%y/y in May 2022, 89bps higher than the 16.82%y/y recorded in April 2022.
- A further breakdown of the report showed that food inflation expanded by 19.50%y/y in May 2022, 113bps higher than 18.37% y/y printed in April 2022. Price pressures also rose month-on-month, albeit at a very slow pace of 1bp to 2.01%m/m.
- Core inflation was not immune to the price pressure as the sub-index rose by 14.90%y/y in the month under review, 72bps higher than the prior month’s print of 14.18%y/y. In a similar trend, the sub-index climbed by 1.87%m/m, an uptick of 65bps from 1.22% in April.
- Going forward, we maintain our prognosis of inflationary pressures remaining northbound given the unabating impact of the geo-political tensions on the prices of energy and selected food products, the persistent insecurity challenge, and exchange rate quagmire.
