- Inflation Rate to Drop in June – FSDH
The cost of goods and services are expected to moderate slightly in June, according to FSDH Research.
Analysts at FSDH Research predicts that the inflation rate will drop from 11.40 percent in May 2019 to 11.32 percent in June.
This they attributed to the slower rate of price increase between May and June when compared with the same period of last year. Therefore, they projected that on a yearly basis the headline inflation will moderate by 0.08 percent in June.
While the projection was based on ‘base effect’ and not on economic improvement, a recent data revealed that the central bank’s foreign exchange intervention program has helped ease the pressure on the Naira, allowing importers and investors to access forex at a better rate than last year.
The introduction of the Investors & Exporters Forex Window and the improvement in the global commodity outlook helped strengthen the Central Bank of Nigeria position in the first half of the year.
This, also explained why the apex bank led monetary policy committee was able to lower the interest rate by 50 basis points to 13.5 percent.
But with global uncertainty deepening amid trade tensions and weak global growth. Oil prices may decline further in the near term and hurt central bank’s ability to intervene as Foreign Direct Investment is likely to remain weak in the main time except a clear economic path is stated by the President Buhari administration.