Nigeria’s Inflation Inches Lower in December

• Nigeria’s Inflation Inches Lower in December

The cost of goods in Nigeria fell slightly in December, following surged in forex liquidity amid growing oil revenue and external reserves.

The Consumer Price Index, which measures inflation rate decreased from 15.90 percent year-on-year in November to 15.37 percent in December 2017, the National Bureau of Statistics (NBS) reported on Tuesday. The eleventh consecutive decrease since January 2017 increase.

On a monthly basis, inflation climbed by 0.59 percent in December, up by 0.19 percent from November. This is likely a temporary upsurge due to Decembers’ fuel scarcity projected in November by Investors King to impact business activities in the month.

The core CPI excluding volatile energy and food decreased from 16.76 percent to 16.50 percent in December 2017. Another indication that price pressures remain high, especially when improved energy sector is excluded.

Food index remained high in December, even though it grew at a slower pace when compared to November. The index rose 19.42 percent year-on-year, down from 20.30 percent in November. On monthly basis, the gauge climbed 0.58 percent, down from 0.88 percent in the previous month.

While the rising external reserves is aiding forex intervention and business activities in the manufacturing sector, new job creation remained low with the unemployment rate at 18.8 percent in the nine-month through September 2017.