Nigeria: Inflation increases in October
Latest reading: Inflation rose to 33.9% in October, above September’s 32.7%. The reading came in above market expectations and marked the second consecutive increase. Looking at the details of the release, price pressures for food intensified due to floods in food-producing areas. Additionally, housing and energy prices rose at a quicker pace in October compared to the previous month, and price pressures for clothing and footwear picked up pace.
Annual average inflation rose to 32.3% in October (September: 31.7%). Meanwhile, core inflation rose to 27.4% in October from September’s 26.5%.
Lastly, consumer prices rose 2.64% in October over the previous month, picking up from September’s 2.52% rise. October’s uptick was the highest reading since March.
Outlook: Our Consensus is for inflation to cool in the upcoming months, curbed by prior monetary policy tightening and a high base effect. Nonetheless, recent floods and fuel prices hikes in September are upside risks.