Nigeria’s headline inflation inched up by 0.05% to 11.28% in September. This is the 2nd consecutive monthly increase after 18 months of a steady decline. The major culprit in the price movement was food inflation which rose by 0.15% to 13.31%. Policy makers will be gratified that core inflation (less seasonalities) declined to 9.8%.
Also comforting is the fact that month-on-month inflation declined. Therefore, the inflation data is a mixed bag of a slight increase in annual and a reduction in core inflation. This will make the decision of the monetary policy committee more dependent on the long awaited unemployment data due to be published on November 5.
In the attached bulletin, the FDC Think-Tank analyses the inflation data for September and its impact on economic policy and business environment.
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