According to the National Bureau of Statistics (NBS), Nigeria’s headline consumer price index recorded its eleventh consecutive drop in 2017. Headline inflation was 15.37 percent year on year in December, moderating from 15.90 percent year on year in November, 42 bps lower than Bloomberg’s compiled mean estimate of 15.79 percent, and 53 bps lower than our forecast of 15.9 percent.
On month-on-month basis, the headline index increased by 0.59 percent as against 0.78 percent the previous month. Food inflation rose by 19.42 percent year on year, below the 20.30 percent year on year recorded in the previous month.
Meanwhile, similar to November, the highest increase was recorded in the prices of bread and cereals, potatoes, yam and other tubers, oils and fats, coffee, tea and cocoa, milk, cheese and eggs, and fish.
On month on month basis, food inflation increased at a notably slower pace of 0.58 percent, compared to the 0.88 percent recorded in the previous month. Similarly, core inflation increased at a slower pace during the review period, rising by 12.10 percent, versus 12.20 percent, in November.
with the highest increases reported in the prices of solid and liquid fuel, passenger transport by air, non-durable goods, vehicle spare parts, furniture and furnishing, clothing materials and other articles of clothing, fuel and lubricants for personal transport equipment, and hospital and medical services. On a month on month basis, the core index increased by 0.51 percent, 27 bps below the 0.78 percent reported the previous month.