Dear Subscriber,

In line with our forecast and the general consensus, Nigeria’s headline inflation climbed to 11.44% in December from 11.28% in November. The rise in inflation was primarily as a result of a boost in aggregate demand (Christmas effect).

The month-on-month inflation declined to 0.74% (9.31% annualized) from 0.8% (10.02% annualized) in November. The moderation in the monthly price index (a reflection of current market conditions) would 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 analyses the inflation data for December and its impact on economic policy and business environment.

Do enjoy your read…