For many people who expected another spike in inflation for December, latest data might be a positive disappointment.
Latest data released by the National Bureau of Statistics revealed that Nigeria’s long-range battle with inflation might be coming to an end.
As opposed to the to November rate which was 18.48%, the Bureau said inflation rate slowed down in the month of December by 0.07% to reach 18.55%.
Highlights of the report reveal that increase in prices were witnessed in all COICOP divisions that yield the Headline Index. Communication and Restaurants and Hotels recorded the slowest pace of growth in December, growing at 5.33 percent and 8.91 percent (year-on-year) respectively.
Had the Nigerian Communications Commission implemented its data floor pricing rule, the communications sector would have seen a spike in its contribution to inflation.
Nigeria’s economy has entered a recessionary mode since the last second quarter after fuel subsidies were removed, the NAIRA (USD1=NGN388.3) was devalued against the US Dollar. The beginning of Nigeria’s economic woes was spiked by the crash in global Crude oil prices.
Analysts and experts however complained that Nigeria’s incoherent and slow implementation of a fiscal policy aggravated the problems.
Earlier this week, the World Bank projected that Nigeria will exit recession by in the latter part of the year by managing to get a 1% GDP growth rate.
Many people are still pessimistic about a possible quick recovery. Many companies have downsized while a sizeable number of companies have shut down operations.
The federal government’s NGN7 trillion budget proposal for the year has not been passed by the National Assembly. Many are of the view that the budget might reinflate the starved economy if well managed.