Nigeria’s inflation is expected to increase to 11.53% for the month of September 2018. This will be the 2nd consecutive month of increasing inflation after an 18-month consistent decline. The rate of increase is not as significant as the impact of the trend on determining inflation expectations.
Our projections also indicate that the monthly inflation will move correspondingly with the year-on-year inflation, increasing to 1.06% (13.48% annualized). The herdsmen/pastoral crisis together with the recent floods impeded supply.
Increasing inflation at a time of wage negotiation is like throwing a flame on gasoline. The unions are likely to be more aggressive in their demands especially in an election season.
In the attached bulletin, the FDC Think-Tank is projecting the inflation numbers for September.
Do enjoy your read…