Nigeria’s headline inflation increased for the sixth consecutive month, increasing by 38bps to 22.79% y/y in June (May: 22.41% y/y). The outturn is 179bps lower than Cordros’ estimate (24.58% y/y) and 21bps lower than Bloomberg’s median consensus estimate (23.00% y/y). Likewise, on a month-on-month basis, headline inflation rose by 19bps to 2.13% (May: 1.94% m/m).
Food inflation advanced by 43bps to 25.25% y/y (May: 24.82% y/y). According to the NBS, the rise in food prices was due to increased costs of Oil and fat, Bread and cereals, Fish, Potatoes, Yam and other tubers, Fruits, Meat, Vegetable, Milk, Cheese, and Eggs. On a month-on-month basis, food inflation increased by 2.40%, relative to the 2.19% m/m recorded in the previous month.
Likewise, the core inflation rose by 22bps to 20.27% y/y (May: 20.06% y/y). The highest increases were recorded in prices of Passenger Transport by Air, Gas, Vehicles Spare Parts, Liquid Fuel, Fuels and Lubricants for Personal Transport Equipment, Medical Services, Passenger Transport by Road etc. Meanwhile, the core index eased by 7bps to 1.74% m/m in June 2023 compared to the previous month (1.81% m/m).
