• World
  • Columnist
  • Commodities
  • WORLD BUSINESS & ECONOMY
  • Executive Knowledge Series
  • Finance
  • Manufacturing
  • Markets
  • Risk & Governance
  • Small Business
  • Technology, Media & Innovation
  • Comments
  • Business AM WebTV
  • Login

Businessamlive
  • FRONTPAGE
  • FINANCE
    • AllAsset ManagementAuditBankingBondBudgetCapital MarketsC&I LeasingCurrencyDealDebt marketForexFund RaisingFundingGovernmentHedge FundsInsuranceInvestmentInvestorInvestor ServicesMergers & AcquistionsMoney marketTreasury BillsMortgagePensionsPersonal financePonziQuantitative EasingshareTaxationTSAWealth Management
      Finance

      Stringent regulations, business environment forced Stanbic IBTC out of BDC business

      20 hrs

      Finance

      Cautious equities trading see gains in Flour Mills, Mobil, Wapco push market cap to ₦21.09trn

      21 hrs

      Finance

      CBN issues guidelines for QR codes operation in Nigeria

      21 hrs

      Finance

      Global Equities: Positive sentiment buoys global markets’ performance on vaccine rollout, Biden confirmation

      January 13, 2021

  • MARKETS
  • ECONOMY
    • AllAfricaAgricAirportsAmericaAsiaAustraliaBreakthroughDealEuropeForeign InvestmentsforexGlobal marketGovernanceIMFMiddle EastNECANigeriaOutlookRich listSouth AfricaSport BusinessTradeU.KWest AfricaWorld Economic forum
      Frontpage

      Moody’s sees negative 2021 outlook for sub-Saharan Africa, with severe economic challenges

      20 hrs

      Commodities

      Metals make sluggish gains on LME, SHFE, as investors anticipate US stimulus

      20 hrs

      WORLD BUSINESS & ECONOMY

      Smart home market profits to reach $176bn in 2025, rising by 127%  

      20 hrs

      Technology

      Zoom to float $1.5bn in fresh capital issue, approaches SEC

      21 hrs

  • COMMODITIES
  • ENERGY
    • AllConferenceElectricityOil and GasPowerRenewable
      Frontpage

      NNPC moves to rehabilitate downstream infrastructure, openscontract bids

      20 hrs

      Companies

      Ardova enters acquisition talks with Enyo as part of expansion drive  

      20 hrs

      Oil and Gas

      NNPC reaffirms commitment to OPEC+ agreement   

      21 hrs

      Imo

      FIRST E&P faces CSR headwinds in Bayelsacommunities, ahead OMLs 83, 85 production start

      21 hrs

  • TECHNOLOGY
  • MANUFACTURING
  • ANALYSIS
    • Analyst Insight

      Data privacy maturity model in organisations

      January 11, 2021

      Analyst Insight

      Stocks set for more record highs

      January 11, 2021

      Analyst Insight

      2021: Time for Nigeria to move into higher gear?

      January 11, 2021

      Analyst Insight

      The trouble with commissions

      January 5, 2021

Frontpage

Nigeria’s August headline inflation forecast to inch up to 11.15%

September 6, 2018709 views0 comments

Ahead of the official inflation figures for the month of August, analysts are projecting that the pace of inflation growth would inch up to 11.15 percent from the 11.14 percent recorded in July.

If this forecast is accurate, it will bring to an end the 18-month consistent decline in the index. This inflection is not surprising as the rate of moderation in the price level had been noticeable over time.

“We forecast that headline inflation will inch up to 11.15 percent in August,” say analysts at Financial Derivative Company (FDC), a Lagos-based economic research firm in their economic bulletin released September 5, 2018.

The analysts based their assumptions on the continued Apapa gridlock is seen increasing inventory carrying costs and demurrage as well as the confluence of the Eid-Al-Fitr and 3-day closure of the 3rd mainland bridge that triggered a hike in transport fares.

The FDC analysts however noted that month-on-month (m-o-m) inflation, which is more reflective of seasonalities, is expected to decline to 0.98 percent (12.36% annualized).

“Typically, the third quarter is the harvest period, which is a season of higher agriculture output. Food commodities such as tomatoes, pepper and yam tubers recorded a significant decline in their prices. The usual increase in food prices during the Eid-Al-Fitr celebrations was moderated by higher agriculture output, with the price of onions being the outlier.”

Read Also:

  • Of international counterterrorism assistance to Nigeria
  • CBN issues guidelines for QR codes operation in Nigeria
  • Nigeria can generate 30,000MW of electricity by 2030, say GenCos
  • Nigeria’s railway e-ticketing platform launch set for next week
  • 2021: Time for Nigeria to move into higher gear?

To them, the prices would have gone higher if not for the moderating factors of increased power output, falling prices of diesel and improved PMI.

“Average on-grid power output increased by 1.32 percent to 3,660MWh/h. This is expected to have a positive impact on aggregate output and also reduce the demand for alternative source of energy such as diesel.

“The average wholesale (depot) price of diesel fell by 0.97 percent to N205/liter in August. This reflects a reduction in logistics costs, which could drive down the operating expenses of firms,” they said, adding that PMI is now out of a contraction, following 12.07 percent increase in August, which suggests an increased level of activities.

 “The improvement in Nielsen’s consumer confidence index to 122 from 113 implies higher willingness of consumers to spend,” they highlighted.

They predict that the reversal in inflation trend have huge impact on the September 24-25 MPC meeting

“The weak Q2 GDP growth rate (1.5%), coupled with the possibility of a reversal in the inflation trend would be major considerations at the next MPC meeting on September 24/25. This would make for an interesting and equally acrimonious meeting,” the said.

Share on Facebook Tweet Email
PreviousFirstBank rolls out educational loans to support schools’ growth plans
NextNigeria’s August crude production hits 1.87mbpd as OPEC’s total output reaches 32.89mb

Leave a comment

- Cancel reply

MARKET DATA

Market Videos

Recent Posts

  • Nigeria’s railway e-ticketing platform launch set for next week
  • Stringent regulations, business environment forced Stanbic IBTC out of BDC business
  • Copper faces downturn in H2 of 2021, analysts predict
  • NNPC moves to rehabilitate downstream infrastructure, openscontract bids
  • Moody’s sees negative 2021 outlook for sub-Saharan Africa, with severe economic challenges

World

Africa

Buhari, Okonjo-Iweala congratulate Adesina over reelection as AfDB President

Europe

EU businesses to cut investments in 2020, says EIB report

America

U.S. increases cost of visa application for Nigerians

Africa

Thatcher-Loving Nigeria Candidate Plans to Overhaul Economy

Africa

AfDB scales up industrialization pace on the continent, delivers improved business access to finance, skills, energy

Frontpage posts

0

UK PM says London terror attack part of ‘new trend’

Frontpage June 4, 2017

1
2

Oil prices slip to $71.43

Frontpage April 18, 2019

3

FG orders investigation into Skye Bank’s failure, says those culpable would be prosecuted

Frontpage October 5, 2018

4

Oil rises to $61 on trade hopes; U.S. inventories eyed

Frontpage September 5, 2019

5

Again, Emefiele forecloses possibility of currency devaluation 

Frontpage January 27, 2020

SUPPORT

  • Photo Gallery
  • Help Centre
  • About Us
  • Accessibility

LEGAL & PRIVACY

  • Terms & Conditions
  • Privacy
  • Cookies
  • Copyright

SERVICES

  • Conferences & Events
  • Analysts Research
  • Advertising Rate
  • Ebooks

TOOLS

  • Portfolio
  • Newsletters
  • News feed
  • Currency Converter

SUBSCRIBE

Join us to get latest updates on business related news.

[mc4wp_form id="3076"]
  • ABOUT US
  • CONTACT US
  • CAREERS
  • TERMS & CONDITIONS
  • PRIVACY POLICY
Copyright 2017. All rights reserved. BusinessAMLive. A Businessnewscorp Member Company.