|
Listen now
Getting your Trinity Audio player ready...
|
Nigeria’s inflation continued its deceleration, moderating to 16.1% year-on-year (YoY) in October compared to 18.0% in the prior month, according to the latest CPI data released by the National Bureau of Statistics (NBS).
This moderation was evident in the food and core baskets, which both settled at 13.1% YoY and 18.7% YoY, respectively (vs 16.9% and 19.5% in September).
However, on a month-on-month (MoM) basis, headline inflation rose by 0.9% vs 0.7% recorded in the prior period.
This result emanated from the improved food supply from the ongoing harvest, which helped moderate food prices in the review period.
The core basket benefiting from the Naira’s stable performance (+3.5% MoM) came in lower at 18.7% YoY vs 19.5% YoY in the prior month.
With ongoing harvests supporting lower food prices and appreciating FX providing relief for the core basket, analysts see more legroom for headline inflation printing lower YoY.
“Although the MoM pressure in October was noticeable, we see latitude for MoM price pressures in November, largely induced by festivity demands for food items as household’s frontload for the festive periods. Nonetheless, we believe the MPC committee might view it as not necessarily significant to alter the current inflation trend. As such, we maintain the view for a rate cut decision in the last MPC meeting for the year,” Cardinal Stone Partners, analysts said.
Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!
 in October compared to 18.0% in the prior month){kind=link}