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Tag: Inflation

  • Nigeria’s Inflation rate drops for seventh consecutive month – NBS

    Nigeria’s Inflation rate drops for seventh consecutive month – NBS

    The National Bureau of Statistics, NBS, on Friday said Nigeria’s inflation rate dropped from 16.05 per cent in July to 16.01 per cent in August.

    The NBS made this known in its Consumer Price Index, CPI, report which measures inflation.

    The development, the NBS noted, is the seventh consecutive month that the index would be declining since January 2017.

    The report read in part: “The urban index rose by 16.13% (year-on-year) in August 2017, down by 0.09 per cent points from 16.04 per cent recorded in July, and the rural index increased by 15.91 per cent in August from 16.08 per cent in July.

    “Food price pressure continued into July as all major food sub-indexes increased. The food index increased by 20.28 per cent (year-on-year) in July, up by 0.37 per cent points from the rate recorded in June (19.91 per cent).

    “This represents the highest year on year increase in food inflation since the beginning of the new series in 2009.”

    According to the NBS, food index reduced by 0.03 per cent to stand at 20.25 per cent %, down from 20.28 per cent recorded in July.

    “Food price pressure continued into August as all major food sub-indexes increased. The Food Index increased by 20.25 per cent (year-on-year) in July, down marginally by 0.03 per cent points from the rate recorded in July (20.28 per cent).”

    NBS data also revealed that food prices recorded an eight-year high in July, 2017.

    TheNewsGuru.com reports that on Tuesday, September 5, the NBS announced that the Nigerian economy had slipped out of recession.

    According to the NBS, in the second quarter of 2017, the nation’s Gross Domestic Product (GDP) grew by 0.55 per cent (year-on-year) in real terms, indicating the emergence of the economy from recession after five consecutive quarters of contraction since Q1 2016.

  • JUST IN: Inflation rate drops to 16.05% – NBS

    JUST IN: Inflation rate drops to 16.05% – NBS

    The National Bureau of Statistics (NBS) says the country’s inflation as measured by Consumer Price Index (CPI), further dropped to 16.05 per cent in July from 16.10 per cent in June.

    The NBS disclosed this in its CPI July 2017 report released on Monday in Abuja.

    The report stated that the headline inflation again reduced to 16.05 per cent (year-on-year) in July compared to 16.10 per cent in June 2016.

    According to the bureau, this makes it the sixth consecutive decline in the rate of headline year on year inflation since January.

    The bureau stated that the Headline index increased by 1.21 per cent in July, 0.37 per cent points lower from the rate of 1.58 per cent recorded in June on a month-on-month basis.

    On food inflation, it stated that food price pressure continued into July with 20.28 per cent (year-on-year) from 19.91 per cent.

    It stated that the figure represented the highest year on year increase in food inflation since the beginning of the new series in 2009.

    It, however, stated the Food sub-index increased by 1.52 per cent in July, down by 0.47 per cent points from 1.99 per cent recorded in June on a month-on-month basis.

    Meanwhile, it stated that core inflation which excluded the prices of volatile agricultural produce eased by 0.30 per cent in July to 12.20 per cent points from 12.50 per cent recorded in June.

    It stated that core inflation similar to overall/headline inflation had declined consecutively since January 2017.

    On a month-on-month basis, it stated that the core sub-index increased by 1.00 per cent in July, 0.32 per cent points lower from 1.32 per cent recorded in June.

  • Inflation rate drops for fifth consecutive time to 16.1% ─ NBS

    The National Bureau of Statistics on Monday released the Consumer Price Index which measures inflation with the index dropping from 16.25 per cent in May to 16.1 per cent as at the end of June.

    The bureau in the report made available to our correspondent in Abuja said this is the fifth consecutive decline in inflation rate since January.

    It reads in part, “The CPI which measures inflation increased by 16.1 per cent year on year in June 2017. “This was 0.15 percentage points lower the rate recorded in May.

    Accordingly, this represents the fifth consecutive decline in the rate of inflation since January.”

    On a month-on-month basis, the NBS report said the Headline index rose by 1.58 per cent in June 2017, representing a decline of 0.30 percentage points from 1.88 per cent recorded in May.

    It added that cumulatively, Month on Month inflation had risen by 9.28 per cent since January 2017 For the food index, the NBS in its report explained that this increased by 19.91per cent (year-on-year) in June 2017, down by 0.64 percentage points from the 19.27 per cent recorded in May.

    It said the increase in food index is an indication of the continued pressure in food prices.

    The NBS report said the Urban index rose by 16.15 percent year-on-year in June 2017 from 16.34 per cent recorded in May, while the Rural index increased by 16.01 per cent in June from 16.02 per cent in May.

    On a Month-on-Month basis, the urban index, according to the report rose by 1.60 per cent in June from 1.84 per cent recorded in May, while the rural index rose by 1.57 per cent in June from 1.92 percent in May.

  • FG vows to reduce inflation to single digit by 2020

    FG vows to reduce inflation to single digit by 2020

    The Federal Government has reiterated its determination to bring down the inflation rate to a single digit by 2020, the Minister of Budget and National Planning, Sen. Udoma Udu Udoma, has disclosed.

    The National Bureau of Statistics (NBS) in its Consumer Price Index (CPI) May 2017 report, released in Abuja on June 14, indicated that the country’s inflation dropped to 16.25 per cent in May from 17.24 per cent in April.

    According to the report, this is the fourth consecutive decline in the rate of inflation since January.

    The bureau stated that the headline index increased by 1.88 per cent in May 2017, 0.28 percent points higher than the rate of 1.60 per cent recorded in April 2017.

    However, Udoma, who featured on a programme,“Guest of the Week’’ on Liberty Television and Radio, expressed government’s commitment to further contain the inflation rate so as to make life more meaningful to the citizens.

    According to him, the Central Bank of Nigeria (CBN) is saddled with the responsibility of achieving the single digit inflation rate by 2020.

    “We are targeting to bring the inflation to single digit by 2020 and it is the role of the CBN to do that,’’ he said.

    The minister expressed optimism that the single digit inflation rate would be achieved in spite the allegations of policy inconsistencies being leveled against the CBN in some quarters.

    He said: “I don’t think there are inconsistencies, you have different objectives and you have to balance, it’s a balancing thing, it’s not inconsistencies.’’

    On plans to submit the 2018 budget to the National Assembly by October, the minister said the government was determined to return to the January-December Budget Year cycle.

    “We want to move back into a January-December budget year because even though the Act that the NASS passed and signed into law allows 12 months which means that this budget just signed has a 12-month lifespan, but it is not the best.

    “People need to plan carefully with the January-December budget cycle.

    “After the budget was passed, we engaged with the leadership of the NASS, the executive team led by the Acting President and we agreed that we will bring the 2018 budget by the beginning of October.

    “This will enable them to work on it and possibly passed it before the end of December so that by January 2018 we can start implementing the budget,’’ he added.

    Udoma also explained why the 2017 budgetary allocation to the nation’s agricultural sector was low when compared to other sectors of the economy.

    According to him, agriculture is for the private sector and the government has no plan to take over the farms and factories from the farmers.

    He specifically noted that the role of government was to provide the enabling environment for the farmers to succeed.

    The minister said: “Agricultural production is for the private sector; we don’t want to take over that from the private sector; we don’t want to take over farms from the farmers.

    “We want the farmers to produce; we don’t want to take over factories from their owners.

    “What government does is to provide an enabling environment because government is not as efficient as the private sector ,when we say we want to support agriculture, it does not mean we are going to do it ourselves and what is required is to support agriculture.’

  • Recession: Emefiele targets single digit inflation rate

    The governor of the apex bank, Central Bank of Nigeria, CBN, Godwin Emefiele on Sunday said the actualisation of a single digit inflation rate is possible in the country.

    Emefiele revealed this on a monitored programme on Arise Television.

    Emefiele explained that with the improvement seen in growth from the negative 1.7 per cent in the last quarter of last year to the negative 0.5 per cent in the first quarter of 2017, the inflation target “is achievable in the course of time”.

    TheNewsGuru.com reports that Nigeria’s inflation rate fell for a fourth straight month in May, dropping to the lowest in a year as growth in prices of most goods, except food, eased. Inflation slowed to 16.25 per cent from 17.2 percent in April, according to data from the National Bureau of Statistics.

    The CBN govenor spoke of huge success in exchange rate stability, based on the intervention of the apex bank had took in the last couple of months.

    In his words: “In 2017, with the improvement we have seen in growth, from the negative 1.7 per cent in the last quarter of last year to the negative 0.5 per cent in the first quarter of this year. We have seen exchange rate stability with some of the actions we have taken in the last couple of months. We do expect that if this trend continues, we should get better. Firstly, with inflation trending downwards, we are hopeful that in the course of time, we will get back again back to single digit inflation.”

    He said the country had developed homegrown solutions to its economic challenges and that the feedbacks from those decisions are positive.

    “ Why needed to adopt Nigerian option, because of our peculiar reasons. On inflation, the CBN had a target of six to nine per cent, unfortunately, it grew to 18.8 per cent and I am happy it is coming down, and I am hopeful it will continue to get better. We looked at the foreign exchange market, and today we have ensured that forex is not N500/$1. It is now between N360 and N370/$1 and we will ensure it gets even better from where it is right now,” he said.

    On some of the stabilisation steps taken by the regulator, Emefiele said the apex bank had opened the market up for more people to come in. “We want more people to in and invest in the economy, and that was why we introduced the Investors’ & Exporters’ Window. We want forex market that will be determined by demand and supply. It has helped in forex flow and led to the appreciation in the naira we are seeing today,” Emefiele said.

    On the real exchange rate for the naira, he said that despite any method used in determining the value of the local currency, the real effective exchange rate should not be above N325/N330 to dollar.

    On the restriction of forex for 41 items, Emefiele said there was need to take a look at what is being imported. “Why should we import toot pick, palm oil and even rice? At a point in time, Nigeria was the largest producer of palm oil, controlling 40 per cent of the market share. Why should we set aside forex for the importation of products that we can produce in the country. My view is that forex should be devoted to critical segments of the economy and for the importation of items that we cannot produce in the country,” he said.

    The CBN boss’ logic is that when items, such as palm oil, are imported, the local producers are made poorer.

    “When we import rice, we impoverish the rice producers in Abakaliki, Kebbi, Sokoto, Katsina and other parts of the country. We need to look at that very seriously because God has blessed this country, with good climate, good weather, which should be taken advantage of. Since we can produce these things, let’s use them to feed our people so that we can save foreign exchange for the country,” he said

    Emefiele said he grew up seeing the country’s economy thriving in the 60s and 70s, adding that he owed Nigerians an obligation to ensure that the economy rebounds.

    Emefiele also said with the level of commitment shown to agriculture and rice production, many manufacturers were already indicating interest in the supporting government’s efforts.

    “As we continue this plan, we have seen some multinationals coming to say they will join us in rice production, palm oil production among others,” he said, adding that the CBN would continue to support multinational that help in building the economy by supporting government’s efforts at promoting agriculture.

    “If PZ Wilmar Nigeria needs foreign exchange because they have a little shortfall, I will give them because I have seen their contributions to the economy. Coscharis has acquired thousands of hectares of land in Anambra, trying to grow rice. And we were there last year, and this year, we will be there again to see what they have done. Dangote is also investing in rice farming,” he said.

    Emefiele said Kebbi, Jigawa, Sokoto, Anambra and Ebonyi states were showing lots of interest in rice production, adding that with the sustenance of these efforts, Nigeria’s economy will be on the path of recovery.

     

  • Adopt Islamic economy to reduce inflation, Don advises FG

    The adoption of Islamic economy can help reduce inflation in the country, a professor of Islamic economics and quantitative economics has said.

    Prof. Chika Aliyu, who teaches at the Usman Danfodio University, Sokoto made this known in an interview with the News Agency of Nigeria (NAN) on Thursday in Abuja.

    “If Islamic economic principle is implemented and we abolish interest definitely the inflation will reduce because interest push up the cost of production.

    “And if the cost of production is pushed because of interest, then the selling prices of goods and services will be very high and there will be inflation in the country.

    “Where we will use profit and loss sharing arrangement there is every tendency that there will be stability in the economy, the prices will be low and the effect of recession will be cushioned, and there will be less effect of recession.’’

    Aliyu said Islamic economic principle emphasised on hard work, creativity, productivity and improvement in the lots of government and the society.

    He said that if the principle of hard work was implanted on Nigerians it would help the country in this era of recession.

    “Secondly, Islamic economy system emphases on justice. If there is fare play and there is justice being implemented the little we have will be used judiciously for the benefit of all.

    “Islamic economy also emphasis on good governance.

    “ A leader should be just and fare, they should be accountable and responsible.

    “If we have responsible and accountable leadership, the meager resources we have will be judiciously used by the leaders.

    “And the economy will be doing better than if we have the opposite “bad leaders’’ who will use the little resources we have to benefit themselves and enrich themselves,’’ he said.

    According to Aliyu other systems have been tried in the country and had failed and now the Islamic economic system is gaining momentum.

    He said that most of its institutions like the Islamic bank, Islamic insurance and Islamic finance were being adopted even among non-Muslim countries.

    Aliyu stated that the difference between Islamic banking and conventional banking was in the interest.

    He explained that Islamic bank does not deal with interest but rather it entails profit and loss sharing arrangement.

    He said in the profit and loss sharing arrangement, capital is raised, people use the capital to do business and the profit shared among all parties involved.

    According to him, when losses are incurred, they are borne by the provider of the capital and not the borrower.

     

     

    NAN

  • Inflation rate drops by 0.52 per cent in March – NBS

    Figures from the National Bureau of Statistics, NBS on Thursday shows that inflation rate dropped by 0.52 percent in March therefore making it the second decline recorded on the year-on-year basis.

    TheNewsGuru.com reports that the first time inflation decline was in February when it dropped by 0.94 per cent.

    In its latest Consumer Price Index for March released in Abuja, the bureau stated that the index, which measured inflation increased by 17.26 per cent year-on-year.

    It, however, mentioned that the increase was a slower pace in March when compared to February consumer activities, which was 17.78 percent.

    The report said, “This is the second consecutive month of a decline in the headline CPI on a year-on-year basis.

    “It represents the effects of stabilizing prices in already high food and non-food prices as well as favourable base effects over 2016 prices.

    “It is also indicative of early effects of a strengthened Naira in the foreign exchange market.’’

    The report said price increases have been recorded in all Classification of Individual Consumption by Purpose divisions that yield the Headline Index.

    It, however, stated that the major divisions responsible for accelerating the pace of the increase in the headline index were Housing, Water, Electricity and Gas.

    Others it said were Education, Food and Alcoholic Beverages, Clothing and Footware and Transportation Services.

    On a month-on-month basis, the report stated that the Headline index increased by 1.72 percent in March, 0.23 percent points higher from the rate recorded in February.

    The Food Index increased by 18.44 percent (year-on-year) in March, slightly down 0.09 percent points from the rate recorded in February, which was 18.53 percent.

    It stated that the index was driven by increases in the prices of bread, cereals, meat, fish, potatoes, yams and other tubers and wine.

    It also stated that the slowest increase in food prices year-on-year was recorded by Soft Drinks, Fruits, Coffee, Tea and Cocoa.

    In addition, the report stated price movements recorded by All Items less farm produce or Core sub-index rose by 15.40 per cent (year-on-year) in March.

    It stated that it was down by 0.60 percent points from the rate recorded in February (16.00) per cent.

    “During the month, the highest increases were seen in miscellaneous services relating to dwelling, electricity, solid fuels, clothing materials.

    “Increases were also seen in other articles of clothing, Liquid fuel, Spirits as well as Fuels and lubricants for personal transport equipment.

    “The Urban index rose by 18.27 percent (year-on-year) in March from 18.57 percent recorded in February, and the Rural index increased by 16.47 percent in March from 16.98 percent in February.’’

    On month-on-month basis, the report stated the urban index rose by 1.76 percent in March from 1.52 percent recorded in February.

    It further stated that the rural index rose by 1.69 percent in March from 1.47 percent in February.

    CPI measures the average change over time in prices of goods and services consumed by people for day to-day living.

    The construction of the CPI combines economic theory, sampling and other statistical techniques using data from other surveys to produce a weighted measure of average price changes in the Nigerian economy.

  • CBN can’t stop inflation – Omisakin

    Dr. Olusegun Omisakin, the Head of Research, Nigerian Economic Summit Group (NESG), says rising inflation rate in the country has gone beyond the control of Central Bank of Nigeria (CBN).

    Omisakin made the observation in an interview with the newsmen on Monday in Lagos.

    Recall that the data released by the National Bureau of Statistics (NBS) on Jan.13 showed that December 2016 inflation rate stood at 18.55 per cent from 18.48 per cent in November.

    Inflation targeting is a major economic policy objective of CBN and this has been the focus of its Monetary Policy Committee (MPC).

    The apex bank, on July 26, 2016, increased the Monetary Policy Rate (MPR) by 200 basis points from 12 per cent to 14 per cent to check inflation.

    The CBN retained all key indicators at its September and November MPC meetings to keep MPR at 14 per cent, Cash Reserve Ratio at 22.50 per cent and the Liquidity Ratio at 30 per cent, all aimed at controlling inflation.

    Omisakin said that the rising inflation had defied CBN’s monetary policy measures, adding that policy tools adopted by the apex bank were only effective in taming inflation arising from demand-supply imbalances.

    “In this case, inflation is cost-push. Production cost is high because producers who want to import intermediate goods for production do not have access to foreign exchange.

    “Most of them go to the black market and definitely the product from this would be expensive, thereby increasing inflation.

    “The CBN cannot do anything through the monetary policy rate to arrest this inflation even if CBN increases the MPR to 20 per cent. Inflation would not come down.

    “The inflation we are experiencing now is out of the control of CBN. CBN can only address issues that have to do with availability and circulation of money and credit control.

    “CBN cannot address cost-push inflation because it cannot provide energy, roads, transport. There are fiscal issues,” Omisakin said.

    The economist urged the CBN to formulate policies that would boost industrial production and economic growth in view of the current economic recession.

    Omisakin called for coordination of fiscal and monetary policies to check the rising inflationary trend in the country.

    “The rising cost of food, transport and energy will reduce if the Federal Government creates concrete fiscal policies with effective implementation to address the situation through increased investment in infrastructure and agriculture,” he said.

    The expert said that speedy passage and effective implementation of the 2017 budget would stimulate economic activities.

     

     

    NAN

  • Again, Nigeria’s inflation soars high, hits 18.5 percent

    The National Bureau of Statistics, NBS on Friday announced that the Consumer Price Index, which measures inflation with the index rising, hit 18.55 per cent in the month of December.

    According to a report posted on the NBS website, the 18.55 per cent is an increase of 0.07 percentage over the 18.48 per cent recorded in the month of November.

    NBS report attributed the increase to a rise in the price of electricity, housing, water, clothing, footwear and education.

    It reads in part, “The Consumer Price Index which measures inflation increased by 18.55 per cent (year-on-year) in December 2016, 0.07 percent points higher from the rate recorded in November (18.48 per cent).

    “Communication, restaurants and hotels recorded the slowest pace of growth in December, growing at 5.33 per cent and 8.91 per cent (year-on-year) respectively.

    “During the month, the highest increases were seen in housing, water, electricity, gas and other fuels, clothing and footwear, and education.”

    NBS noted that during the month, all major food sub-indexes increased, with soft drinks recording the slowest pace of increase at 7.66 per cent year on year.

    Reviewing the report, Opeoluwa Idowu, an economist with Consumersng shared a simplified analysis wherein he pointed at the urban index rose by 20.12 per cent (year-on-year) in December from 20.07 per cent recorded in November, while the rural index increased by 17.20 per cent in December from 17.10 per cent in November.

    “On month-on-month basis, the urban index, rose by 1.08 per cent in December from 0.78 per cent recorded in November, while the rural index rose by 1.04 per cent in December from 0.79 per cent recorded in November.” Mr, Odowu said.

     

  • Again, inflation rate climbs high, hits 18.48% in November

    Again, inflation rate climbs high, hits 18.48% in November

    The Consumer Price Index, CPI rose by 18.48 per cent in November, an analysis compiled by an economist with Consumersng, Opeoluwa Idowu on the report released by the National Bureau of Statistics have shown.

    The CPI is used to measure the rate of inflation in Nigeria. Recall that Mr. Idowu in a telephone interview had earlier forecast an increase in inflation rate for the month of November by 18.45%.

    In the review compiled by Mr. Idowu, the NBS blamed the rise in inflation rate on increases recorded in the housing, water, electricity, gas and clothing materials.”

    The report reads in part, “The CPI which measures inflation increased by 18.48 per cent (year-on-year) in November 2016, 0.15 percentage points higher than the rate recorded in October (18.33 per cent).

    “During the month, the highest increases were seen in housing, water, electricity, gas and other fuels, clothing materials, books, liquid fuel passenger transport, motorcycles and shoes.”

    “The report stated that communication and insurance index recorded the slowest pace of increases in November, rising at 5.61 per cent and 6.76 per cent year-on-year respectively.

    “It said the food sub index increased by 17.19 per cent year-on-year in November, up by 0.10 percentage points from the 17.09 per cent recorded in October.

    “The urban index, according to the report rose by 20.07 per cent year-on-year in November from 19.91 per cent recorded in October, while the rural index increased by 17.10 per cent in November from 16.95 percent in October.

    On a month-on-month basis, the report stated that the urban index dropped by 0.03 per cent while the rural index was also down by 0.05 per cent.

    The NBS said in the CPI report for the month of November which was released on Thursday that the 18.48 per cent inflation rate is 0.15 percentage points higher than 18.33 per cent recorded in October.