FDC ECONOMIC BULLETIN – JANUARY 10, 2018 (Re: Annual headline inflation to increase but monthly price level down)

Dear Subscriber,

We are forecasting that annual headline inflation for December will climb to 11.37% from 11.28% in November. Essentially, this rate of increase in inflation has more than quadrupled by 0.09% from 0.02% last month. While in quantum and nominal terms it is not worrisome, directionally it will be a cause for concern for policy makers.

The monthly inflation which is a better reflection of current prices and inflation expectations is expected to decline. This should provide some relief for the doves in the MPC at their next meeting on Jan 21/22.

In the attached bulletin, the FDC Think Tank shares its estimates for December inflation and its implications on your business.

Do enjoy your read…