Nigeria’s headline inflation creeps up marginally to 21.91%
Against analysts’ expectations of a decline, Nigeria’s headline inflation inched up 0.09% to 21.91% in February due to a sharp drop in the velocity of circulation of money. However, monthly inflation (a better reflection of inflation today) fell by 0.16% to 1.71%, indicating a slight ease in inflationary pressures in the country.
Oil prices plunge to a 15-month low
Brent price fell below $75pb on March 15th, a 15-month low. The decline in oil price was driven by increased crude supply from Russia and subdued demand as the collapse of Silicon Valley Bank spurred fears of a broader financial crisis. Similarly, LNG prices lost 1.94% to $2.53/mmbtu due to a milder weather forecast and lower demand from Europe.
Nigeria forecasts a further cut in its cocoa output
In Q4'22, Nigeria's exports of superior-quality cocoa beans surged by 203.70% to N74.65bn from N24.58bn in Q3'22. However, the country has recently lowered its output projections for the 2022–2023 season to 240,000 metric tonnes from 250,000 metric tonnes previously projected due to adverse weather conditions and the ongoing cash scarcity. This could support cocoa prices in the near term, which fell by 1.77% ($2,611.00/mmt) owing to increased rainfall in Ivory Coast.
Download Here - FDC Commodities Update: March 15, 2023