Latest data from the official data office of Nigeria said consumer price index or inflation in Africa’s largest economy dropped to 11.37% in the month of January.
The Abuja-based National Bureau of Statistics said in its summary note that the further drop in January is 0.07 percent points lower than the rate recorded in December 2018 (11.44) percent.
However, the NBS said increases were recorded in all COICOP divisions that yielded the Headline index.
On month-on-month basis, the Headline index increased by 0.74 percent in January 2019, the same rate as was recorded in December 2018 (0.74) percent.
The percentage change in the average composite CPI for the twelve months period ending January 2019 over the average of the CPI for the previous twelve months period was 11.80 percent, showing 0.3 percent point from 12.10 percent recorded in December 2018.
The urban inflation rate increased by 11.66 percent (year-on-year) in January 2019 from 11.73 percent recorded in December 2018, while the rural inflation rate increased by 11.11 percent in January 2019 from 11.18 percent in December 2018.
The NBS has earlier this week announced further growth in the country’s GDP to 2.3% for the full year 2018, a data that signaled that the country’s economy must have exited its fragile recovery to a sustainable growth.
The promoter of @StockmanNigeria, Ologbon-ori Taiwo, attributed the further slowed down in consumer prices to a combination positive stimulus as well as a reduction in farmers-herders clashes in the North Central region of Nigeria.
“Apart from the fiscal policies, the Herder’s and farmers clash has stopped, which we could not isolate from this. The inflation on food prices( farm produce) has really adjusted lower significantly.”
The CBN might not be too quick to lower headline interest rate which has been pegged at 14% for several quarters since Africa’s largest economy slipped into a recession in 2016.
“We just can’t afford to lower rate anytime soon. Meanwhile, For inflation to moderate to 11.37%, this means the fiscal policies of this government are Yielding positive outcome since CBN maintained stagnated rate position for more than one year,” he said.