October 17, 2023/United Capital

The Consumer Price Index (CPI) report for September 2023 shows that Nigeria’s headline inflation surged by 92bps to print at 26.72% y/y in Sep-2023 from 25.80% y/y in Aug-2023. The significant jump in inflation numbers came on the back of the continued effects of the fuel subsidy removal, which led to price increases in transportation, food, education, and health, etc.

Additionally, the unification of the Foreign Exchange (FX) market segments continues to weigh on consumer prices as the Naira averaged N758.70/$ and N955.35/$ at the official market and parallel markets respectively, during the month of Sep-2023. Meanwhile, on a month-on-month basis, headline inflation decelerated by 108bps to print at 2.10% in Sep-2023 from 3.18% in Aug-2023. On a divisional level, the main drivers of the headline inflation were food & non-alcoholic beverages and housing water, electricity, gas & other fuel. 

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