Inflation at a 17-year high of 19.64% did not come as a surprise to most Nigerians. What was baffling though, was that the monthly inflation rate seems to be tapering at a time when most consumers had virtually lost hope.
Our analysis suggests that headline inflation may be approaching a point of inflection and the reasons are not far-fetched. In spite of cost-push factors, consumers are resisting price increases because most Nigerians are broke. They are living on a shoestring, eating less and switching to cheaper substitutes. As the harvest season approaches, we expect prices to decline, especially because global food prices are down and Bonny light is now at $92pb, way below its high of $125pb. We are projecting that inflation could taper to 19.3% in September before falling further.
These issues and many others were dissected in the Channels News at Ten Segment by Bismarck Rewane with the courtesy of the FDC Think Tank.
Enjoy your read!