FDC ECONOMIC BULLETIN – AUGUST 08, 2017 (Re: July headline inflation to increase to 16.26%)

Headline inflation is expected to inch upwards to 16.26%. This will be a reversal of a trend of moderating prices over the last five months.

The increase in the inflationary trend can be construed as a manifestation of predictions made in the previous month. Base year effects have a reduced influence on inflation and as such structural features in the market are driving consumer prices.

In contrast to the direction of the headline inflation rate, month-on-month inflation is anticipated to decline significantly to 1.37% (17.74% annualized) from 1.6% (20.98% annualized) the previous month.

In the attached bulletin, the FDC Think-Tank analyses inflationary pressures in the economy.

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