BY BAMIDELE FAMOOFO
In line with analysts’ expectations, Nigeria’s headline inflation reversed the upturn recorded December 2021 as it moderated slightly by 3bps to 15.60% y/y in January 2022 as against 15.63% in December 2021.
The outturn is 13bps and 10bps higher than Cordros’ estimate (15.47% y/y) and Bloomberg’s median consensus estimate (15.50% y/y), respectively. On a month-on-month basis, headline inflation moderated by 34bps to 1.47%.
Food inflation moderated by 24bps to 17.13% y/y (December 2021: 17.37% y/y). Notably, pressures were most significant in the prices of Bread and cereals, Potatoes, yam and other tubers, Soft drinks, Oils and fats, and fruit. On a month-on-month basis, food inflation rose by 1.62%, relative to the 2.19% m/m recorded in the previous month.
Elsewhere, core inflation settled at 13.87% y/y. Pressures were most significant in the prices of Electricity, Liquid fuel, Wine, Tobacco, Spirit, Solid fuels, Cleaning, repair and hire of clothing, Shoes and other footwear, other services in respect of personal transport equipment, other services and pharmaceutical products. Compared to the previous month, the core index rose by 13bps to 1.25% m/m in January 2022.
