Nigeria’s Inflation Declines to 12.48%

• Nigeria’s Inflation Declines to 12.48%

Cost of goods and services in Africa’s largest economy Nigeria moderated for the 15th consecutive month in April, the National Bureau of Statistics reported on Tuesday.

The Consumer Price Index, which measures inflation rate improved from 13.34 percent recorded in March to 12.48 percent in April.

On a monthly basis, inflation increased by 0.83 percent in the month, up 0.01 percent from the rate filed in March.

Food index grew by 14.80 percent in April, down from almost 20 percent recorded in the second quarter of 2017. Suggesting that rising food prices are beginning to cool in recent months.

The report also showed that the rate of price increase is slowing down across most sectors following central bank’s continuous forex intervention program and the effective implementation of policies that broaden the forex market.

Again, improved global commodity outlook is supporting central bank’s efforts at improving forex liquidity and subsequently slowing down consumer prices, especially now that Brent crude oil is trading at about $77 a barrel. Therefore, going forward inflation rate is expected to return to a single digit by the fourth quarter of the year given better than expected foreign revenue, the approval of 2018 budget by the Senate and the surge in business confidence that is currently boosting investment inflows as recorded on the Investors & Exporters FX Window.

Overall, improved economic outlook will further slowdown consumer prices and deepen economic growth in key sectors like the manufacturing sector that has been growing consistently in the last one year.