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FDC ECONOMIC BULLETIN – JULY 23, 2018 (Re: June headline inflation drops to 11.23%)

Dear Subscriber,

As widely expected and in line with analysts’ consensus, June headline inflation (Y-o-Y) declined for the 17th consecutive month to 11.23%. The drop notwithstanding, showed a slower rate of price moderation than previous months. This indicates that we might be approaching the tipping point and inflation will begin to creep up again.

Also noteworthy is the sharp increase in month-on-month (M-o-M) inflation now 1.23% (15.94% annualized). This increase is attributable to an uptick in food prices and supply shocks arising from higher diesel prices.

In the attached bulletin, the FDC Think-Tank analyses inflationary movements in June and its likely implications on interest rates and monetary policy.

Do enjoy your read…

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