Highlights

As predicted in our previous report, the National Bureau of Statistics (NBS) reported a shift in the declining inflation trend seen in the past two months. Year-on-year, Headline Inflation climbed to 32.70% in September 2024, up from 32.15% in August 2024. On a month-on-month basis, Headline Inflation also rose to 2.52% in September (compared to 2.22% in August), reaching its highest point since March of this year.

Food Inflation, the main contributor to the overall increase in Headline Inflation, rose to 37.77%, up from 37.52% in August 2024. On a month-to-month basis, Food Inflation also grew by 27 basis points, reaching 2.64% in September (compared to 2.37% in August).

Outlook

The NNPC has implemented an additional 13% increase in the price of Premium Motor Spirit (PMS), bringing the cost to N998 per litre, effective October 9, 2024. This price hike is anticipated to contribute to higher inflation for the rest of the year, as rising transportation and energy costs for businesses are likely to intensify inflationary pressures in the short term.

Click here “September 2024 Inflation – Inflation Moderation Halted by PMS Hike” to view the full report.