By Akintunde Oyedokun
Research Analyst
Oil prices dropped over 2% on Monday, with Brent settling at $71.83 per barrel and U.S. WTI at $68.04. Investors were disappointed by China’s stimulus measures, which failed to boost demand in the world’s second-largest oil consumer. Adding to the pressure, a stronger dollar made oil more expensive globally, while Bank of America projected a significant rise in non-OPEC supply in 2025. Deflation concerns in China and OPEC+’s postponed supply increase further weighed on the market.
China’s Inflation Slows As Producer Price Deflation Deepens
China’s consumer inflation slowed to a four-month low in October, rising just 0.3% year-on-year, while producer price deflation worsened, new data revealed. The economic challenges persist even after Beijing approved a $1.4 trillion package to alleviate local government debt pressures, falling short of a direct cash infusion into the economy. Economists suggest that the stimulus may have limited immediate impact on demand and inflation, with core inflation showing only a slight increase.
Food Price Surge, Import Taxes Jerks India’s October Inflation To 5.81%
India’s consumer price inflation hit a 14-month high of 5.81% in October, driven by rising vegetable prices and a recent import tax hike on edible oils. Tomatoes saw sharp price increases due to weather disruptions, with food costs now nearing the central bank’s upper tolerance limit of 6%. Core inflation, boosted by festive spending and higher gold prices, reached an estimated 3.60%. Economists warn that currency weakness and global pressures could further elevate inflation.
Rand Drops 2% Amid Global Turmoil, Trump’s Election Victory, Weakening Gold Prices
The South African rand weakened by 2% on Monday, pressured by a softer gold price, a sluggish Chinese economy, and uncertainty over U.S. policy following Donald Trump’s election win. At 15:14 GMT, the rand stood at 17.9375 against the dollar, while the U.S. dollar strengthened by 0.6% across major currencies. Analysts predict continued volatility through January, with potential U.S. policy changes, such as tariffs and tax cuts, which could push inflation higher and support the dollar. The Johannesburg Stock Exchange’s Top-40 index fell by 0.4%, while the yield on the 2030 government bond rose to 9.225%.
Nigerians To Excempt Those Earning Below Minimum Wage From PAYE Tax
Taiwo Oyedele, Chairman of the Tax Reform Committee, confirmed that minimum wage earners and those slightly above will be exempt from PAYE tax once the Tax Reform Bills are passed. The reform also proposes lower taxes for those earning up to N1.7 million monthly. VAT will be reduced on essentials like food, education, and health. The goal is to simplify the tax system, reduce burdens on low-income earners, and support remote work opportunities.
