Analysts commend CBN policies to contain Nigeria’s inflation

Motolani Oseni

Analysts at Financial Derivates Company Limited (FDC) has said that continuous slowdown in Nigeria’s inflation means that some of the Central Bank of Nigeria (CBN) policies to contain inflation can be considered to be successful.

The National Bureau of Statistics (NBS) for the third time since December 2018 has reported a drop in the inflation rate.

According to FDC latest report, “Contrary to FDC projection for an increase in headline inflation in February, the data released today by the NBS showed a slight decline to 11.31 per cent.

“This is the third time inflation has declined in the last 6 months. The moderation in inflation will be cheery news to the doves in the monetary policy committee at their meeting in March. Because it means that some of the CBN’s policies to contain inflation can be considered to be successful.”

The report by FDC stated that “The NBS data also shows that monthly inflation fell in line with the annual headline inflation.

“The month-on-month inflation fell to 0.73per cent (9.12per cent annualized) in February from 0.74per cent (9.19per cent annualized) in the previous month. Sub-Saharan Africa (SSA) – Ghana’s inflation up after touching a 6-year low in January.”

On inflation outlook for this year, the report said, “The commencement of the planting season in the second quarter would reduce output.

“This in addition to the implementation of the minimum wage could mount pressure on commodity prices, thus, heightening inflationary pressures.”