Nigeria inches out of recession as inflation further drops

Expert offers path to complete exit

Nigeria’s journey out of recession is on course although at snail speed. This hope has been boosted by the further drop in inflation rate, fifth in a row, as at June 30, 2017.

The year, which opened at 18.72 per cent inflation rate, contracted to 16.10 per cent by the ending of last month.The slow moderation in the price level of goods for the first five months of the year indicates an expansion in the agricultural value chain and manufacturing activities aided by the many initiatives of the Central Bank of Nigeria (CBN) and the Federal Government.

The National Bureau of Statistics (NBS), in its June 2017 inflation data released yesterday in Abuja, noted that the Consumer Price Index (CPI), which measures inflation, increased by 16.10 per cent (year-on-year) in the month under review.

It explained that the new price level represents a 0.15 per cent points lower than the rate recorded in May (16.25 per cent).The NBS offered more insight into the said month’s price level regime, saying: “ On a month-on-month basis, the headline index increased by 1.58 per cent in June 2017, 0.30 per cent points lower than the rate of 1.88 per cent recorded in May 2017. Month-on month inflation has cumulatively risen by 9.28 per cent since January 2017.

“ The Food Index increased by 19.91per cent (year-on-year) in June 2017, down by 0.64 per cent points from the rate recorded in May (19.27 percent), indicating a continued pressure in food prices.”

It went on: Price movements recorded by all items less farm produce or core sub-index rose by 12.50 per cent (year-on-year) in June, down by 0.50 per cent points from rate recorded in May (13.00 per cent). This represents the eighth straight month of decline in the core index since November 2016.”

The agency further notes: “Some selected food price watch data for June 2017 as contained in the report reflect that the average price of one dozen of medium size agric eggs increased year-on-year by 35.42 per cent and decreased month-on-month by 1.54 per cent to N514.66 during the month from N522.71 in May 2017.”

Meanwhile, the Executive Secretary of the African Capacity Building Foundation (ACBF), Prof. Emmanuel Nnadozie, says for Nigeria to completely exit her current economic challenge, she requires top notch economists to provide current workable and sustained solutions.

ACBF is an African Union (AU) capacity building institute that helps build sustainable human and institutional capacity for good governance and development management on the continent.