Headline inflation is likely to decline to 13.5%, making it the 14th consecutive month with a cumulative fall of 5.2%. The recent fall in the price of PMS and diesel, due to the flooding of the market with supply, has helped to douse the distribution cost- related price increases in early January and keep inflation down.
However, we are projecting a little inflection (increase) in the monthly inflation rate by 0.83% attributable to the planting season shortages.
The delayed rainfall in April may come back to bite the inflation optimists especially if it coincides with the implementation of the minimum wage review in Q3 2018.
The attached bulletin, the FDC Think-Tank analyses inflationary pressures in the economy.
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