- Nigeria's economy continues to improve as the inflation rate drops to 13.34 percent
- The NBS states that this is the 14th consecutive time the inflation rate has dropped
- The federal government's target is to keep the inflation rate at the single digits level
For the 14th consecutive time since January 2017, inflation rate inched closer to the single digits target set by both monetary and fiscal authorities for the economy.
Latest figures released on Thursday, April 12, by the National Bureau of Statistics (NBS) showed consumer price index (CPI), which measures inflation level in the economy, increased by 13.34% between March 2017 and March 2018.
The statistics agency said the new figure was about 0.99% points less than the 14.33% rate recorded in February 2018.
Dr Yemi Kale, the statistician-general of the federation and CEO of NBS twitted the latest report in his official verified Twitter handle: @sgyemikale
The tweet: "March 2017 inflation report published. Headline inflation drops for 14th consecutive time to 13.34% in March 2018, year on year from 14.33% in February. Food inflation drops to 16.08% from 17.59% and Core inflation drops to 11.2% from 11.7%"
During the last Monetary Policy Committee (MPC) meeting last week in Abuja, the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, said members resolved to retain all controlling policy rates at prevailing levels until inflation rate dropped to the single digits zone.
Apart from Monetary Policy Rate (MPR), also known as lending rate, which was retained at 14%, liquidity rate was maintained at 30%.
Also, cash reserve requirement, the amount of cash the banks are allowed to keep in their reserves, was kept at 22.5%.
The Asymmetric corridor was left at +200 and -500 basis points around the MPR as it was during the previous meeting in November 2017.
In the NBS report, composite food index, which highlights the average of some food items, majorly staple foods, rose by 16.08% (year on year) in March 2018, down from the 17.59% rate recorded in February.
The federal government, which represents the fiscal authorities, had equally set the target of single digits inflation rate.
This is just as it continues the pursuit of policies and programmes to strengthen the economic recovery which analysts say remains fragile since the recent exit from recession.
NAIJ.com previously reported that the managing director and chief executive of Financial Derivatives, Bismarck Rewane, said that he expected inflation to drop to 13.8% in March, down from 14.33% that was recorded for February.
He stated this during his presentation to the Lagos Business School at the weekend, in which he said that spending is expected to increase alongside currency pressures by May 2018.
He said that positive economic data would be released on inflation, growth and external reserves.
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