FEBRUARY CPI UPDATE!!!

1. ©PearlMutual Consulting Ltd 2016
February 2018 CPI Update
Strong Decline!!!
Nigeria’s consumer price index continued its
southwards trajectory for the thirteenth
consecutive time. It declined substantially by -
80bps from 15.13% in January to 14.33% in
February. According to National Bureau of
Statistics, increases were recorded in all
Classification of Individual Consumption by
Purpose (COICOP) divisions that yield the
headline index.
This sustained reduction can be attributed to the
significant fall in food prices, non-alcoholic
beverage, housing and utility
Source: PearlMutual Analytics
Minty Flavors
In the month of February 2018, all MINT countries
witnessed decreases in their respective inflation
rates. Turkey’s CPI reached an all-time low,
posting 10.26% (-9bps) in February, thus attaining the
lowest CPI since July. This was attributed to decreasing
prices of utilities, clothing, and transport. Similarly, the
headline index for Mexico eased to 5.34% (-21bps) in
February. This was as result of decrease in prices of
food, housing and energy. In the same vein, Indonesia’s
inflation rate decreased to 3.18% (-7bps) in February,
making it the lowest inflation since December 2016.
This northward movement was due to decreases in
education, health and transportation prices.
Source: PearlMutual Analytics
Inflation Outlook for Nigeria
We expect inflation rate to decline in the short run due to
stability in foreign exchange. However, inflows from
maturing Open Market Operations can result in increased
liquidity in system.
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2. This product focuses on the Nigerian Economy ©PearlMutual Consulting Ltd 2016
Analysts
Busayo Inuojo
Busayo.inuojo@pearlmutual.com
Sunday Udoh.
sunday.udoh @pearlmutual.com
Olufunmi Adepoju, CFA
olufunmi.adepoju@pearlmutual.com
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