Inflation rate in Nigeria has been projected to drop just as the local economy recovers from the scathing crisis of economic recession.
Financial analysts at the FSDH Research, which is the research arm of FSDH Merchant Bank, have projected a slower inflation rate of 15.99 per cent for the month of August.
The National Bureau of Statistics (NBS), had reported 16.05 per cent inflation rate in July and may soon release the figure for Consumer Price Index (CPI) in August, which is used in measuring the nation’ inflation rate.
The FSDH’s new report said: “We expect the inflation rate (year-on-year) to drop marginally to 15.99 per cent in August 2017 from 16.05 per cent reported in the month of July 2017.”
The organisation stated that its model indicates that the general price movement in the consumer goods and services in August 2017 increased the Composite Consumer Price Index (CCPI) to 239.27 points, representing a month-on-month increase of 0.95 per cent.
“We estimate that the increase in the CCPI in August 2017 would produce an inflation rate of 15.99% marginally lower than the 16.05% recorded in July,” it said, adding that the expected decrease in the inflation rate was largely attributed to the downward movement in some categories of non-food items in the Consumer Price Index (CPI) basket, as well as decrease in some food prices.
Based on the data calendar released on the website of the National Bureau of Statistics (NBS), we expect the NBS to release the inflation rate for the month of August 2017 on September 15, 2017.
“The monthly Food Price Index (FPI) that the Food and Agriculture Organization (FAO) released last week indicates that the index averaged 176.6 points in August 2017, 1.30% lower than the July 2017 value.
“According to the FAO, the decline in the FPI for August 2017 reflected generally lower values for cereals, sugar and meat than the prior month and more than compensated for the increase in the vegetable oil and dairy prices.