January 15, 2025/InvestmentOne Update

The December inflation report for the year (2024) showed that inflation added points in the final month of the year according to the National Bureau of Statistics (NBS). The report showed that inflation gained albeit slower than our expectation as the CPI added 20bps to close the year at 34.80% YoY from the 34.60% YoY reported in November. The growth was expected due to the increased consumer spending in the festive period in December.  

Going forward, we expect inflation figures to trend lower in the coming months as the NBS completes the rebasing of CPI figures in the coming weeks and releases a second batch of inflation figures in January. Furthermore, we expect the stability seen in the petroleum prices at the pump, high base impact and reduced foreign exchange volatility to contribute to the gradual reduction in inflation figures.

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