Dear Subscriber,

Headline inflation is projected to decline by 11bps to 11.2% in March. If our projections are accurate, it will be the third consecutive monthly decline. The sustained moderation in the general price level can be partly attributed to the continuous fall in food prices amid exchange rate stability and output growth. However, our forecast points to a fall in the monthly price index to 0.72% (8.97% annualized) from 0.73% (9.16% annualized) in February.

The commencement of the planting season in Q2 coupled with the implementation of the minimum wage could reverse this downward trend in the near term.

In the attached bulletin, the FDC Think Tank shares its estimates for March inflation and its implications on the business and policy environment.

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