Cordros Securities has predicted increase in the inflation rate in Nigeria going forward.
In its current outlook for the Nigerian economy, the firm stated:
We highlight that inflation risks remain tilted to the upside, particularly as persistent global uncertainty continues to exert pressure on naira stability.
This, in turn, is expected to keep import costs elevated and contribute to overall price increases. In addition, seasonal dynamics in the agricultural cycle are likely to reinforce food price pressures.
For context, May typically marks the beginning of the planting season in Northern Nigeria, overlapping with the off-season harvest, while in the Southern region, planting activities began earlier in April and are expected to continue through May.
Given these seasonal patterns, food supply is likely to remain constrained relative to demand in the near term, sustaining upward pressure on food prices.
Therefore, headline inflation may likely increase in May, reflecting sustained pressure across both food and core components of the consumer basket.
