FDC ECONOMIC BULLETIN – JULY 02, 2018 (Re: Year-on-year inflation set to fall again to 11.1%, but monthly inflation to spike)

Dear Subscriber,

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.

Do enjoy your read…