Botswana and Nigeria released their June CPI readings on Friday. Headline inflation in Botswana accelerated further, coming in at 12.7 percent y/y from 11.9 percent in May. The acceleration was driven by increases in major components such as transport, food and non-alcoholic beverages, housing, water, electricity, gas and other fuels. A weaker pula and elevated global energy prices also contributed to higher inflation.
In Nigeria, inflation continued to quicken, adding to bets that the Central Bank of Nigeria will have to hike rates further in the coming months. Inflation accelerated to a 5-year high of 18.6 percent y/y from 17.7 percent in May. With persistent gasoline shortages, erratic power supply and continued currency weakness, inflation risks in Nigeria are skewed firmly to the upside.
