Nigeria's consumer price index declined marginally to 16.05% in July 2017, its lowest level in 14 months, driven by decreases in farm produce prices. Meanwhile, inflation rates fell in most MINT countries (Mexico, Indonesia, Nigeria, Turkey) except Mexico, where rates rose to their highest since 2008 due to increasing food and energy costs. Nigeria is currently the only MINT country with double-digit inflation, and the outlook for further declines is uncertain given persistent rises in food prices.

1. ©PearlMutual Consulting Ltd 2016
July 2017 CPI Update
Weaker Gains!!!
Nigeria’s consumer price index continued its
southwards trajectory for the sixth consecutive
time. It declined marginally by 5bps from 16.10%
in June to 16.05% in July (Y-o-Y). It is the lowest
figure recorded in the last 14 months. According
to National Bureau of Statistics, increases were
recorded in all Classification of Individual
Consumption by Purpose (COICOP) division
that yield the headline index.
We believe increases in farm produce has
impacted on the inflation rate.
Source: PearlMutual Analytics
Minty Flavors
In the month of July 2017, all member countries
with the exception of Mexico saw a downward
shift in their inflation rates. Mexico’s inflation
rate rose to 6.44% (+13bps), attaining the highest
CPI since December 2008. This has been
attributed to increasing prices of food and energy.
On the other hand, the headline index for Turkey
fell to 9.79% (-111bps). This is as a result of slow
rising food costs. Indonesia’s inflation rate also
fell to 3.88% (-49bps) in July from 4.37% in June.
This decrease is as a result of slow rise in raw
food, housing, clothing, health and transport
costs.
Nigeria is currently the only member country still
recording double digit inflation rates.
Government must intensify efforts to achieve a
single digit rate just as that of other MINT
members.
Source: PearlMutual Analytics
Inflation Outlook for Nigeria
With the persistent rise in food prices and the
slow easing of prices of all other commodities,
Nigeria’s inflation outlook appears bleak. It is
hoped that improvements in agriculture will halt
the current upward movement of food prices.
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Mexico Indonesia Nigeria Turkey

2. This product focuses on the Nigerian Economy ©PearlMutual Consulting Ltd 2016
Analysts
Gwatau Amos T.
amos.gwatau@pearlmutual.com
Sunday Udoh.
sunday.udoh @pearlmutual.com
Olufunmi Adepoju, CFA
olufunmi.adepoju@pearlmutual.com
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