Nigeria: Inflation increases in September
Latest reading: Inflation came in at 32.7% in September, which was up from August’s 32.2%. The increase was partly driven by a larger rise in prices for food, caused by floods in food-producing areas. Additionally, transportation prices increased at a faster pace due to the removal of fuel subsidies.
The trend pointed up, with annual average inflation coming in at 31.7% in September (August: 31.3%). Meanwhile, core inflation ticked up to 26.5% in September from August’s 26.4%.
Lastly, consumer prices increased 2.52% from the previous month in September, picking up from August’s 2.22% increase. September’s result marked the highest reading since March.
Outlook: Our panel expects inflation to decline from Q4 onwards due to past interest rate hikes and a high base of comparison. However, risks are skewed to the upside and stem from recent floods and the removal of fuel subsidies in September.