Nigeria’s headline inflation sustained its uptrend in May, increasing by 19bps to 22.41% y/y (April: 22.22% y/y). The outturn is 6bps higher than Cordros’ estimate (22.35% y/y) and 31bps higher than Bloomberg’s median consensus estimate (22.10% y/y). Likewise, on a month-on-month basis, headline inflation rose by 3bps to 1.94% (April: 1.91% m/m).
Food inflation advanced by 21bps to 24.82% y/y (April: 24.61% y/y). The rise in food inflation was triggered by increased prices of Oil and fat, Yam and other tubers, Bread and cereals, Fish, Potatoes, Fruits, Meat, Vegetables, and Spirits. On a month-on-month basis, food inflation increased by 2.19%, relative to the 2.13% m/m recorded in the previous month.
Elsewhere, the core inflation moderated by 7bps to 20.06% y/y (April: 20.13% y/y). Significant pressures were recorded in prices of Gas, Passenger transport by Air, Liquid fuel, Vehicles spare parts, Fuels and lubricants for personal transport equipment, Medical services, and Passenger transport by road. Meanwhile, the core index increased by 36bps to 1.81% m/m in April 2023 compared to the previous month.
