Akintunde Oyedokun
Research Analyst
Oil edged higher Tuesday, with Brent at $62.10 and WTI at $58.62, as markets weighed ample global supply against uncertainty over Venezuelan output after Maduro’s capture. Venezuela’s declining oil sector limits near-term gains, though production could rise with stability and investment. Ukrainian strikes on Russian sites add further risk.
German Inflation Eases in December
German inflation fell to 2.0% in December, below expectations, while core inflation dropped to 2.4%. The slowdown was driven by lower energy, leisure, clothing, and food prices amid a weak economic recovery. Inflation is expected to remain steady in early 2026, with service prices supporting overall rates. Euro zone inflation is also likely to stay near the ECB’s 2% target.
UK Services Sector Weakens as Costs Rise
Britain’s services sector ended 2025 weaker than expected, with the final S&P Global UK Services PMI at 51.4, signaling modest growth. Rising staff, fuel, and material costs pushed input prices up at a seven-month high, while firms increased their charges at the fastest pace since August. Economic growth remains sluggish, with GDP contracting 0.1% in Q3 and stagnating in Q4. Persistent inflation limits the Bank of England’s ability to cut interest rates, even after lowering them to 3.75%, with markets pricing in one or two small cuts in 2026.
Kenya’s Economy Grows 4.9% in Q3 2025
Kenya’s economy expanded 4.9% year-on-year in Q3 2025, up from 4.2% last year, boosted by strong performances in agriculture and construction. Mining and quarrying also contributed to growth. After years of heavy borrowing for infrastructure, the government is focusing on fiscal consolidation. The World Bank and President Ruto expect continued improvement, citing the recovery in key sectors.
Nigeria’s Cash Dominance Persists in 2025
About 93% of Nigeria’s currency remained outside banks in November 2025, with total cash in circulation hitting N5.26 trillion, the year’s highest. Despite rising bank reserves from N25.99 trillion to N30.94 trillion, most cash flowed through the informal economy, limiting deposits and lending. The trend highlights a long-standing preference for physical cash over bank deposits in everyday transactions.
