Headline inflation is finally expected to reverse its upward trend with a marginal dip to 17.1% this February. This moderation in inflation is due to the waning of base year effects of 2016. In February last year, the CPI spiked by 4.18 points due to extraordinary events such as the crash of the naira in the forex market.

It is anticipated that monthly inflation will slide to 0.9% (11.7%, annualized) mirroring the relative calmness in the domestic market between January and February 2017.

In the attached bulletin, the FDC Think-Tank analyzes the likely outcome of price movements in February