Highlights

Data released by National Bureau of Statistics (NBS) showed that Headline Inflation grew in May 2024. Buoyed by increments in both components – Food Inflation and Core inflation, Headline Inflation grew modestly by 0.26% to 33.95% (April 2024: 33.69%). However, maintaining its month-on-month declining trend, Headline Inflation was down to 2.14% in May 2024 (April 2024: 2.29%), indicating that the rise in prices is at a slower pace despite the volatility of the Naira and fuel scarcity that occurred during the period.

Outlook

Over the past two months, Headline Inflation grew at a slower pace. This suggests to us that inflationary pressure is approaching its peak. Nevertheless, with planting season now in full effect and the impact of increased demand of goods and services during the just concluded festive activity (Eid el Kabir), we project June 2024 Headline Inflation to settle at  34.01%.

Click here “May 2024 Inflation – Anticipation of Sustained Moderation in Growth Rate” to view the full report.