After rise in Sept., Nigeria’s headline inflation contracts to 11.26% in October
The National Bureau of Statistics (NBS) on Wednesday published October 2018 inflation report, showing that Nigeria’s headline consumer price index moderated, bucking the two consecutive month increase.
Headline inflation printed 11.26% y/y in October, down from 11.28% y/y in September. The data came in 7bps below our forecast of 11.33% y/y and 8bps above Bloomberg compiled average estimate of 11.34% y/y. On month-on-month basis, the headline index moderated to 0.74% (vs. 0.84% the previous month).
However, according to the statistics, food inflation rose by 13.28% y/y in the review period, higher than the 13.31% y/y recorded in September. Instructively, the highest increase was recorded in the prices of Fruits, Meat, Vegetables, Potatoes, yam and other tubers, Bread and cereals, and Oils and Fats. On month-on-month basis, food inflation tapered to 0.82%, compared to the 1.00% recorded in the previous month.
Besides, core inflation was 9.90% y/y during the review period, vs. 9.80% in September. The highest increases were reported in the prices of fuel and lubricants, vehicle spare parts, domestic and household services, carpets and other floor coverings, dental services, hospital services.
On a m/m basis, the core index increased at a faster pace of 0.80%, 3 bps below the 0.64%% reported in September.
