December 2024/InvestmentOne Report

The newly released Consumer Price Index (CPI) report by the National Bureau of Statistics (NBS) revealed that inflation continued its uptick in November 2024, after the brief slowdown seen in July and August 2024. Specifically, headline inflation rose by 72bps to 34.60% YoY, compared to what was recorded in October 2024. This came in line with our expectations, as consumers continue to grapple with the high cost of living, a consequence of the stringent economic reforms enacted by the current government. In line with recent trends, the rise in headline inflation emanated from cost pressure from both food and core inflation which increased to 39.93% and 28.75% respectively in the period under review. 

Going forward, we expect inflation figures to remain elevated, with a likelihood of a further rise in December due to persistent challenges relating to consumer prices, especially food. The sustained shortage of food supply, FX volatility, high cost of input, as well as energy costs are expected to stoke higher inflationary pressures in December. In addition, we envisage that consumer spending during the yuletide period should also push headline inflation rate northwards in December 2024.

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