Nigeria’s Headline Inflation Drops to 11.31% in February


By Bamidele Famoofo

The National Bureau of Statistics (NBS) just published the February 2019 inflation report, showing that Nigeria’s headline consumer price index moderated for the second consecutive month. Specifically, headline inflation was 11.31percent year on year (y/y) in February declining from 11.37percent y/y in January.

The data came in 2 bps above Cordros Capital forecast of 11.29 percent y/y, but beat Bloomberg consensus estimate of 11.50 percent y/y by 19 bps. On a month-on-month basis, the headline index printed 0.73 percent (vs 0.73% in January)

Food inflation rose by 13.47percent y/y in the review period, slightly lower than the 13.51percent y/y recorded in January. Notably, the highest increase was recorded in the prices of Fish, Bread and cereals, Vegetables, Meat, Fruits, Potatoes, Yam and other tubers, oils and fats, soft drinks. On a month-on-month basis, food inflation increased at a slower pace, by 0.82%, compared to the 0.83% recorded in the previous month.

Core inflation was 9.8 percent y/y during the review period, vs. 9.9 percent in January. The highest increases were reported in the prices of tobacco, repair & hire of footwear, major household appliances, domestic services & household services, dental services, medical & hospital services, cleaning, and repair & hire of clothing. On a m/m basis, the core index increased at much slower pace of 0.65percent, 15 bps below the 0.65percent reported in January.