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Nigeria’s inflation rate projected to return to stability

Nigeria’s inflation rate projected to return to stability


After seven months of rising inflation, the Nigeria consumer price index is set to begin a downward trend as June inflation figures is expected to drop between 15.38 and 15.5 percent from 15.6 percent as at May 2016.

Inflation had began trending upward in November 2015 rising to 9.5 percent from 9.3 percent.

It had risen to 15.58 percent due to rising cost of goods triggered off by high cost of fuel and lower valuation of the currency, naira.

The trend has been on upswing month-on-month for the past ten months, culminating in a huge 6-year high recorded in May.

Analysts at FSDH Merchant Bank said they expect inflation to drop to 15.38, while Financial Derivatives Company headed by economist, Bismark Rewane on the other hand, expect a much marginal decline to 15.5 percent.

According to the analysts, the decline is coming mainly from food products such as tomatoes, rice and beans.

FSDH said despite the sharp drop in the value of the naira at the interbank market following the floating of the exchange rate, the prices of goods did not reflect the sharp drop.

However, National Bureau of Statistics (NBS) is expected to release its June figure this week.