Inflation rate decelerates further, now 14.33%

The National Bureau of Statistics (NBS) has published February 2018 inflation report, showing that Nigeria’s headline consumer price index extended deceleration (which started in 2017) to the thirteenth consecutive month.

Headline inflation was 14.33% y/y in February, moderating from 15.13% y/y in January. The data came in 33 bps and 28 bps below Cordros Capital forecast of 14.66% y/y and Bloomberg compiled average estimate of 14.61% y/y respectively. On month-on-month basis, the headline index increased by 0.79% (vs. 0.80% the previous month).

Food inflation rose by 17.59% y/y, lower than the 18.92% y/y recorded in January.

Meanwhile, similar to the previous month, the highest increase was recorded in the prices of bread and cereals, vegetables, potatoes, yam and other tubers, coffee, tea and cocoa, milk, cheese and eggs, and fish. Also, on m/m basis, food inflation increased at a slower pace of 0.85%, compared to the 0.87% recorded in the previous month.

Core inflation was 11.7% y/y during the review period, vs. 12.10% in January. The highest increases were reported in the prices of fuel and lubricants for personal transport and transport equipment, vehicle spare parts, narcotics, clearing, hospital services, maintenance and repair of personal transport equipment, repair and hire of clothing, and passenger travel by air. On a m/m basis, the core index increased at a faster pace of 0.75%, 7 bps above the 0.68% reported in January.