December 15, 2023/Cordros Report

In November, Nigeria’s headline inflation increased further by 87bps to 28.20% y/y (October: 27.33% y/y). The inflation tally came in 37bps lower than Cordros’ estimate (27.83% y/y) and 15bps lower than Bloomberg’s median consensus estimate (28.05% y/y). Similarly, on a month-on-month basis, headline inflation rose by 35bps to 2.09% (October: 1.73% m/m).

Food prices remained under pressure in November, as food inflation rose significantly by 132bps to 32.84% y/y (October: 31.52% y/y). The spike in food prices on a year-on-year basis was caused by increases in prices of Oil and fat, Bread and cereals, Potatoes, Yam and other tubers, Fish, Fruit, Meat, Vegetables and Milk, Cheese, and Eggs. On a monthly basis, food inflation increased by 2.42%, relative to the 1.91% m/m recorded in October.

On the contrary, the core inflation (All items less farm produce and energy) slowed down by 19bps to 22.38% y/y (October: 22.58% y/y). The highest increases were recorded in prices of Passenger Transport by Road, Passenger Transport by Air, Medical Services, Repair of Furniture, Maintenance, and repair of Personal Transport Equipment, etc. Elsewhere, on a month-to-month basis, the core index settled higher by 14bps to 1.53% m/m in November (October: 1.39% m/m).