March 15, 2024/Cordros Report

Nigeria’s headline inflation rose by 180bps in February to 31.70% y/y (January: 29.90% y/y). The outturn is 50bps and 40bps higher than Cordros’ (31.20% y/y) and Bloomberg’s median consensus (31.30% y/y), estimates, respectively. Similarly, on a month-on-month basis, headline inflation increased by 48bps to 3.12% (January: 2.64% m/m).

Food inflation increased significantly by 251bps to 37.92% y/y (January: 35.41% y/y). The increase in Food inflation on a year-on-year basis was influenced by an uptick in prices of Bread and cereals, Potatoes, Yam and other Tubers, Fish, Oil and fat, Meat, Fruit, Coffee, Tea, and Cocoa. On a month-on-month basis, food inflation increased by 3.79%, relative to the 3.21% m/m recorded in the previous month.
 
Likewise, the core inflation (All items less farm produce and energy) surged by 154bps to 25.13% y/y (January: 23.59 y/y). The highest increases were recorded in prices of Passenger Transport by Road, Actual and Imputed Rentals for Housing, Medical Services, Pharmaceutical products, etc. However, on a monthly basis, the core index eased by 7bps to 2.17% in February (January: 2.24% m/m).