- The National Bureau of Statistics announced Nigeria’s inflation rate rose year on year in November by 7.9%
- This was 0.2% lower than the 8.9% recorded in October
- The headline Inflation rate is published monthly and is compared on a year on year basis. For example, November 2013 and November 2014
- In this instance, prices of goods and services rose by 7.9% between November 2013 and November 2014
- Headline inflation however rose by 0.59% on a month to month basis (between October 2014 and November 2014)
- Nigeria’s food index which is a subset of the Headline inflation rate rose 9.1% year on year down 0.2% from 9.3% recorded in October
- This may not be a surprise as we are currently in the harvest season which helps bring down prices of food.
- The NBS explained that ‘The onset of the harvest season has continued to bring consumers a respite from higher food prices after food prices peaked in August’
- The core index (which is the headline inflation less food inflation) rose 6.3% year on year.
- The inflation rate is yet to take into consideration the effect of the recent devaluation of the naira.
- We expect inflation rate for December to rise sharply to above 9.5% by the time the effect of the devaluation is factored in.
- This is despite several monetary policy measures the CBN introduced to tighten things.
- Press Release
