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The United States inflation figure eased to 3.4 percent in May from 3.6 percent in April, while the Financial Derivatives Company Limited forecasted that Nigeria’s inflation would rise further to 34 percent from 33.69 percent in the previous month.
A recent report by the US Bureau of Statistics showed that the core Consumer Price Index (CPI) on a year-to-year basis dropped to 3.4 percent from 3.6 percent, indicating that prices are cooling off in the US.
Meanwhile, in Nigeria, FDC projected that Nigeria’s headline and food inflation rates will likely rise for the 17th consecutive time to 34 percent and 41 percent, respectively, in May.
Though the country’s National Bureau of Statistics is expected to release its May CPI and inflation data on June 15th, FDC predicted a further rise.
The firm stated this in its recently released Lagos Business School (LBS) Executive Breakfast Presentation for June.
According to the firm, the persistent inflation will cause the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) to “maintain the status quo” at its July meeting.
Recall that Nigeria’s headline and food inflation rates rose for the 16th consecutive month to hit 33.69 percent and 40.53 percent in April.
April’s inflation comes amid a 245 percent electricity tariff hike and rising transportation costs in Nigeria during the period under review.
