Nigeria’s Year-on-Year inflation dipped further in the month of January to 15.13%, in line with our projection. This also marks the 12th consecutive monthly decline in Y-o-Y headline inflation since February 2017.
However, Month-on-Month (M-o-M) inflation increased to 0.80% (10.03% annualized) from 0.59% (7.31% annualized) in December. The rise in M-o-M inflation was partly due to an increase in transport fares attributable to the spasmodic fuel scarcity across the country.
This continued trend of declining inflation is likely to encourage a shift towards a more accommodative monetary stance and lower interest rates whenever the MPC reconvenes. The current standoff between the executive arm of government and the legislative makes the timing of such a meeting unpredictable.
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