Transport fares increased by 100% in December, and surprisingly, inflation declined by 0.53%. The delayed impact of the fuel scarcity on inflation is expected in January.
The tenuous link between fuel and commodity prices is because food commodities are typically transported by trucks powered by diesel, the price of which has been relatively stable.
The surge in oil price to $69.8pb, which is good for export revenues, is putting pressure on the landing cost of refined products, and is becoming a poisoned chalice to Nigerian citizens.
The attached slides contain a snapshot of the commodities market and the burning economic issues on the domestic and global front.
Enjoy your read!