• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Markets Market Views
Inflation: Headline Inflation sustains uptrend

Inflation: Headline Inflation sustains uptrend

CSL StockbrokersbyCSL Stockbrokers
4 years ago
in Market Views, Op-Eds, Politics, Research Analysis
Share on FacebookShare on TwitterShare on Linkedin

Based on the data released by the National Bureau of Statistics, Headline inflation in Nigeria rose by 15bps to 12.13% in January, marking the fifth consecutive increase in consumer price index.

Notably, the rise in the headline index was driven by the continued uptrend in food prices given the supply gap emanating from the closure of the land borders.

Nigeria's inflation rate, Nigeria's Inflation rate drops

Specifically, the Food index rose by 18bps to 14.85%, the highest level since April 2018. However, the core index rose marginally by 2bps to 9.35%- we believe the soft increase was supported by the stability in the foreign exchange market as well as the tight liquidity management stance of the apex bank.

We highlight that food prices have been on a steady rise since August when the government implemented its anti-smuggling land-border closure to stem the illegal importation of rice and other contraband products.

Accordingly, the shortfall in the supply of major consumer staples amidst the inability of local producers to satisfy local demand has continued to put upward pressure on prices.

[READ MORE: Gas flaring: A never-ending dark tunnel)

On a month on month basis, there was a synchronized upward movement in all of the three major indices, albeit the magnitude of the increase was marginal. Specifically, the headline inflation and food inflation rose by 2bps apiece to 0.87% and 0.99% in January. In our view, this reflects lower demand-pull pressures following the end of the festivities. Core inflation, on the other hand, increased marginally by 1bp to 0.82%.

Inflation: Headline Inflation sustains uptrend  

Looking ahead, we do not envisage a  slowdown in inflationary pressures as we believe the closure of the border will keep the prices of major consumer staples elevated given the huge supply gap.

Additionally, we think the expected hike in electricity tariff (by c.30%), the increase in VAT (from 5% to 7.5%), and the implementation of the new minimum wage will add further pressure on the price index. All in, we expect the CBN will continue to maintain a tight liquidity posture via the OMO window in order to attract capital inflows and maintain stability in exchange rate.

_______________________________________________________________________

CSL STOCKBROKERS LIMITED CSL Stockbrokers,

Member of the Nigerian Stock Exchange,

First City Plaza, 44 Marina,

PO Box 9117,

Lagos State,

NIGERIA.


Download Nairametrics App for breaking news and market intelligence.
   
Tags: Food indexheadline inflationNational Bureau of Statistics
CSL Stockbrokers

CSL Stockbrokers

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *







NM newsletters
Bankers committee
Kwakol
Abbey
IMT

Zenth Bank
UBA
Mega Millions

Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

Recent News

  • FG removes VAT on Diesel for 6 months 
  • Provisional 25,000 naira increment now applies to all Federal workers – Femi Gbajabiamila
  • BUA Cement begins cement price slash to N3,500 from Oct 2nd 

Follow us on social media:

Recent News

diesel

FG removes VAT on Diesel for 6 months 

October 1, 2023
Gbajabiamila to resign as member of House of Representatives today

Provisional 25,000 naira increment now applies to all Federal workers – Femi Gbajabiamila

October 1, 2023
  • Download Nairametrics iOS App
  • Download Nairametrics Android App
  • Contact Us
  • Home
  • Exclusives
  • Markets
  • Industries
  • Economy
  • Business News
  • Financial Literacy
  • Opinions

© 2023 Nairametrics

No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • Login
  • Sign Up

© 2023 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In