May’s headline inflation increased by +26bps (when compared with the previous month) to 34% y/y.
Meanwhile, on a month-on-month basis, headline inflation eased by -15bps to 2.1% from 2.3% recorded in the previous month. Notably, month-on-month headline inflation maintained a downward trend for the third consecutive month since February ’24. This can be partly attributed to the ongoing restrictive monetary stance of the CBN.
Food inflation (40.7%) recorded an increase of +13bps when compared with the previous month. The highest increases were recorded in the prices of bread, cereals, oil and fat, meat, fish, potatoes, yam, and other tubers. On a y/y basis, imported food price inflation increased by +80bps to 34.8% y/y from 34% y/y recorded in the previous month. In May, the NGN/USD recorded a -6.8% m/m depreciation in the NAFEM window.
