German inflation surged marginally in April due to higher food prices and a little decline in energy prices than in previous month. German consumer prices, adjusted for harmonization to facilitate comparison with other European Union countries, experienced a 2.4% increase, marking a slight uptick from the 2.3% year-on-year rise observed in March. There was a small increase in headline inflation, core inflation, which excludes volatile food and energy prices, eased to 3.0% in April from 3.3% in March. However, energy expenses decreased by 1.2% compared to the previous year, despite the removal of price controls in January, the implementation of a higher carbon price, and the conclusion of a temporary reduction in VAT from 19% to 7% for gas and district heating, while energy prices fell 2.7% year-on-year in March. Additionally, food prices were 0.5% higher in April than in the same month of 2023 while Services prices are increasingly being driven by a sharp jump in wage costs.
Nigeria secures a $600 million investment from Maersk for its seaport infrastructure
Nigeria has entered into an agreement with A.P. Moller-Maersk, a prominent Danish shipping company, to invest $600 million in the country’s seaport infrastructure. The investment was secured and finalized during a meeting between President Bola Tinubu and Robert Maersk Uggla, the Chairman of Moller-Maersk, during World Economic Forum gathering in Saudi Arabia. Nigeria has promised to overhaul its ports, including in the commercial capital Lagos, aimed at alleviating congestion that poses challenges for businesses, encouraging more opportunities for revenue expansion and minimizing trans-shipments from larger ships to smaller ships.”
The South African rand strengthens prior to the release of local economic data
On Monday, the South African rand strengthened in anticipation of forthcoming releases of local economic data and the Federal Reserve’s policy review scheduled later in the week. The rand traded at 18.6550 against the U.S. dollar , about 0.8% stronger than its previous close. The dollar index was depreciated by 0.26% against a basket of currencies.Investors are currently anticipating a delay in rate cuts from the U.S. Federal Open Market Committee (FOMC) meeting statement scheduled for Wednesday, drawing considerable global market attention. On the stock market, the Top-40 index closed 1.49% higher, while the broader all-share index rose by 1.44%. Additionally,the yield on South Africa’s benchmark 2030 government bond decreased by 12.5 basis points to 10.660%, indicating its strengthening.
