Headline inflation is anticipated to drop to 12.7%, the lowest level since March 2016. This is mainly attributed to the waning base year effect. Whilst core inflation is projected to move in tandem with the headline inflation, we expect food inflation to move in the opposite direction driven largely by higher food prices.
We are projecting month-on-month (MoM) inflation to maintain its upward trend by 1.03% (13.09% annualized) due to the commencement of the planting season.
The attached bulletin, the FDC Think-Tank analyses inflationary pressures in the economy.
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