Drop in Energy Prices to Taper Global Inflation – Analysts

Must Read

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...
- Advertisement -

In Meristem’s expectation for August, we recounted how global food prices rose to a 7-month high in August and higher energy prices stimulating inflation.

However, in September, we saw that while seasonality factors (onset of Autumn) and buying interests kept food prices elevated, new headwinds in the international oil market triggered a depression of aggregate prices in many climes. Consequently, Eurostat expects inflation in the Euro Area to decline further to -0.30% YoY in September (vs -0.2% YoY in August and 0.4% YoY in July).

Drop in Energy Prices to Taper Global Inflation - Analysts
Photo by Zbynek Burival 

In the United States, although personal consumption expenditure (+1.0% in August) – largely on food services, accommodation and healthcare, would spur some upward price movements, like most of the advanced markets, expectations are that the slip in energy prices would taper the inflationary pressure.

Crude oil prices on the last day of September declined by 956bps from USD45.28 in August to USD40.95. This reflected the breach in the OPEC+ quota by the United Arab Emirates, a resumption of oil production in Libya and slower demand from the world’s largest oil importer, China.

- Advertisement -

Although some of our worries on the prospects of oil prices have begun to crystallize (worries on China’s stockpile of crude in previous months), we still hold that a sustained rebalancing of the oil markets would depend on a COVID-19 medical breakthrough and stricter compliance with OPEC+ production quotas.

- Advertisement -
Drop in Energy Prices to Taper Global Inflation - Analysts - Brand SpurDrop in Energy Prices to Taper Global Inflation - Analysts - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Read Also:  CPI Drops from 16.01% August Rate to 15.98% in Sept 2017 - NBS

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Drop in Energy Prices to Taper Global Inflation - Analysts - Brand SpurDrop in Energy Prices to Taper Global Inflation - Analysts - Brand Spur

Latest News

Xiaomi Beats Estimates with Record Quarterly Revenue and Net Profit in Q3

Xiaomi Corporation, an internet company with a smartphone and smart hardware connected by an Internet of Things (“IoT”) platform...

Mutual Benefits Assurance Changes the Venue for Extra-Ordinary General Meeting

Mutual Benefits Assurance Plc wishes to notify its valued shareholders and stakeholders that the venue of the Company’s Extra-Ordinary General Meeting (EGM) scheduled to...

PZ Cussons Nigeria postpones its 72nd AGM

The Board of Directors of PZ Cussons Nigeria Plc, hereby announces the postponement of its 72nd Annual General Meeting earlier scheduled to hold on...

40,000 young people in Nigeria to benefit from Young Africa Works-IITA project training program

In May this year, the International Institute of Tropical Agriculture (IITA) partnered with the Mastercard Foundation to start the Young Africa Works-IITA Project, an...

10 characteristics of the average Nigerian

10 characteristics of the average Nigerian They are passionate about their religious faiths. An overwhelming number of Nigerians want to go to heaven when...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Drop in Energy Prices to Taper Global Inflation - Analysts - Brand SpurDrop in Energy Prices to Taper Global Inflation - Analysts - Brand Spur