Nigeria's August Inflation Rate Expected to Rise

Analysts forecast that Nigeria's headline inflation rate for August 2023 will rise above the July rate of 15.43%, with estimates ranging from 15.3% to 15.94%. Dr Ayodeji Ebo, Chief Executive Officer at MDU Capital Limited, anticipates a year-on-year (YoY) inflation rate of around 15.6%, citing high petrol and diesel prices as significant factors affecting transportation and production costs.

Damilare Asimiyu, Head of Research at FSDH Group, predicts an increase to 15.94% YoY, attributing this to base-year effects, although he expects the month-on-month (MoM) inflation rate to slow to 1.57% from 1.66% in July. Food inflation is projected to rise marginally to 20.49% YoY, while core inflation is expected to moderate to 14.68% YoY.

Kehinde Jones, Head of Research and Strategy at Anchoria Capital Group, forecasts a moderation to 15.3% for the headline inflation in August, with expectations of upward pressure from food prices and energy costs later in the year.