Nigeria’s headline inflation maintained upward trajectory, as it expanded by 49ps in September 2020 to 13.71% y/y (August: 13.22% y/y), the highest level since February 2018. The outturn is 20bps higher than Cordros’ (13.51% y/y) estimate, owing to a negative surprise from food inflation. Month-on-Month, headline inflation increased by 14bps to 1.48%, the highest level since June 2017.

Food inflation rose by 66bps to 16.66% y/y in the period under review. Notably, the highest increases were recorded in bread and cereals, potatoes, yam and other tubers, meat, fish, fruits and oils and fats. From a month ago, food inflation expanded by 1.88%, relative to the 1.67% recorded in the previous month.

Elsewhere, core inflation was up by 6bps to 10.58% y/y. Pressures were most significant in the prices of Passenger transport by air, Medical services, Hospital services, Pharmaceutical products, Passenger transport by road, motor cars, vehicle spare parts, maintenance and repair of personal transport equipment, repair of furniture and paramedical services. Similarly, on a month-on-month basis, the core index was down by 11bps to 0.94%, relative to the 1.05% recorded in the previous month.