February 15, 2024/Cordros Report

Nigeria’s headline inflation rose by 98bps in January to 29.90% y/y (December: 28.92% y/y). The outturn is 40bps higher than Bloomberg’s median consensus estimate (29.50% y/y). Likewise, on a month-on-month basis, headline inflation increased by 35bps to 2.64% (December: 2.29% m/m).
 
Food inflation grew stronger in January by 148bps to 35.41% y/y (December: 33.93% y/y). The rise in Food inflation on a year-on-year basis was caused by increases in prices of Bread and cereals, Potatoes, Yam and other Tubers, Oil and fat, Fish, Meat, Fruit, Coffee, Tea, and Cocoa. On a month-on-month basis, the Food inflation rate settled at 3.21%, relative to the 2.72% m/m in December 2023.
 
In the same vein, the core inflation (All items less farm produce and energy) rose by 50bps to 23.59% y/y (December: 23.06% y/y). The highest increases were recorded in prices of Passenger Transport by Road, Medical Services, Actual and Imputed Rentals for Housing, Pharmaceutical products, Accommodation service, and Passenger Transport by Air. On a monthly basis, the core index settled higher by 40bps to 2.24% m/m in January (December: 1.82% m/m).