Headline Inflation marginally rose to 12.20% y-o-y(Jan’20:12.13%) for the sixth consecutive time since September 2019, this is 0.07 percent points higher than the rate recorded in the previous month. 12.20% remains the peak in inflation since April 2018. Headline Inflation was highest in Bauchi (14.47%), Niger (14.06%) and Plateau (13.98%), while Borno (10.46%), Abuja (9.68%) and Kwara (9.59%) recorded the slowest rise
Food inflation increased further by 14.90% y-o-y in Feb’20, 0.05 percent points higher from 14.85% recorded in January. Food inflation on a year on year basis was highest in Sokoto (17.12%), Plateau (16.99%) and Gombe (16.96%), while Nasarawa (13.50%), Bauchi /Katsina (13.04%) and Bayelsa (11.89%) recorded the slowest rise.
The ”All items less farm produce” or Core inflation, moderated by 0.09 percent point to 0.73% y-o-y in February 2020 from 0.82% recorded in Jan’20. Month-on-Month followed in the same trend by 9.43%, 0.08 percent points higher from 9.35% recorded in Jan’20. The highest increases were recorded in prices of Pharmaceutical products, Non-durable household goods, Catering services, Passenger transport by air, Repair of furniture, Maintenance and repair of personal transport equipment, Water supply, carpet and other floor coverings, Major household appliances, Dental services, Hospital services and Vehicle spare parts.
CBP Research is of the opinion that Headline inflation will maintain its uptrend going forward, largely owing to the outburst of Coronavirus disease.
Nigerian economy is obviously caught up in the cross-hairs with continuous drops in global demand for oil and fall in oil prices, below the benchmark of $57 pbl—nearly double its current price of around $30 to $33.
On the upside it gives investors the opportunity to invest in the stock market as majority of the stocks listed on the Nigerian Stock Exchange are currently trading at their year low.