FDC ECONOMIC BULLETIN – DECEMBER 19, 2017 (Re: Inflation eases to 15.9%, directionally positive but nominally meaningless)

Dear Subscriber,

Headline inflation slowed to 15.90% in November from 15.91% in October, marking the 10th consecutive decline in 2017. Year to date (January – November), headline inflation in Nigeria has averaged 16.65%. However, for the first time since May 2017, month-on-month inflation increased to 0.78% (9.79% annualized) from 0.76% (9.54% annualized) in October.

December is usually characterized with high spending due to the Christmas shopping. In addition, supply shocks emanating from the intermittent fuel crisis and increased liquidity in the system are expected to exacerbate the inflationary pressure.

In the attached bulletin, the FDC Think-Tank analyses inflationary movements in September and provides a summary of commodity price movements this week.

Do enjoy your read…