December 16, 2024/Cordros Report

Nigeria’s headline inflation increased by 72bps to 34.60% y/y in November (October: 33.88% y/y). The outturn aligns with Cordros’ estimate (34.60% y/y) and 30bps higher than Bloomberg’s median consensus estimate (34.30% y/y). On a month-on-month basis, headline inflation was steady at 2.64% (October: 2.64% m/m).

Food inflation expanded by 77bps to 39.93% y/y in November (October: 39.16% y/y). The rise in Food inflation on a year-on year basis was caused by increases in prices of the following items: Yam, Water Yam, Coco Yam (Potatoes, Yam & Other Tubers Class), Guinea Corn, Maize Grains, Rice (Bread and Cereals Class), Beer, Pinto (Tobacco Class), and Palm Oil, Vegetable Oil (Oil and Fats Class). On a month-on-month basis, food prices surged by 5bps to 2.98% (October: 2.94% m/m).

In the same vein, core inflation (All items less farm produce and energy) increased by 38bps to 28.75% y/y (October: 28.37% y/y). The highest increases were recorded in prices of the following items: Taxi journey per drop, Bus journey intercity, Journey by motorcycle (under Passenger Transport by Road Class), Rents (Actual and Imputed Rentals for Housing Class), Meal at a local Restaurant (Accommodation Service Class), and hair cut service, women’s hairdressing (Hairdressing salons & personal grooming establishments Class). Meanwhile, the core index eased by 30bps to 1.83% m/m compared to the 2.14% m/m in the previous month.