Nigeria’s headline inflation is likely to slide again to 11.1% in June, supported again by base year effects. It will be the 17th consecutive month of decline, bringing it close to the Sub-Saharan African average of 10%.
Disturbingly, month-on-month inflation is projected to rise to 1.13% (annualized at 14.40%), driven by the increase in the price of diesel and the intensity of the herdsmen conflict in the middle belt Nigeria. This slide in inflation and the threat of a rebound will make the next MPC session an interesting but difficult meeting.
In the attached bulletin, the FDC Think-Tank analyzes inflationary pressures in the economy.
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