Headline inflation is expected to decline sharply to 16.1% in May from 17.24% recorded in the previous month on the backdrop of waning base year effects. This is the sharpest fall in over 4 years. The magnitude of decline is in line with market consensus. However, the question still arises about how much of the data explains consumer price realities.

Prices remain sticky downwards with the exception of some commodities, especially food commodities, which have recorded significant price increases. Hence, there seems to be an inconsistency between anecdotal and empirical evidence.

In the attached bulletin, the FDC Think-Tank addresses the issues surrounding the enigma that is Inflation in Nigeria.

Do enjoy your read…