#CPIWatch

The 2026 CPI outlook is looking promising, with inflation expected to moderate further. Here's a breakdown:

*US Inflation Forecast:

- Headline inflation is projected to be around 2.7% in December 2025, with a slight increase to 2.8% in early 2026.

- Core inflation is expected to remain steady at 2.6% in December 2025, with a gradual decline to 2.5% by mid-2026.

*Nigeria's Inflation Outlook:

- The Manufacturers Association of Nigeria (MAN) projects headline inflation to drop to 14% in 2026, driven by easing food prices and stable energy costs.

- The Central Bank of Nigeria (CBN) is expected to implement further disinflationary policy measures, supporting a stable macroeconomic environment.

*Key Drivers:

- *Shelter Costs*: Expected to remain a significant contributor to inflation, with a 3.2% increase in December 2025.

- *Food Prices*: Projected to ease, with a 3.1% increase in December 2025.

- *Energy*: Expected to remain volatile, with a 2.3% increase in December 2025.

*Implications:

- The Federal Reserve may proceed with caution, balancing inflation control with employment concerns.

- A potential rate cut in early 2026 could support economic growth.