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Emefiele reveals factors aiding high inflation rate, how CBN will end it

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The governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has revealed factors contributing to high headline inflation which has increased the cost of living in Nigeria.

Emefiele mentioned security, tensions in the country and poor public infrastructure as reasons the headline inflation remains above the ceiling of CBN’s six to nine percent inflation corridor.

The latest Consumer Price Index data from Nigerian Bureau of Statistics had put headline inflation at 18.12 percent in April 2021, down from 18.17 percent in March 2021 – far above the apex bank’s ambition.

In a Monetary Policy Committee document released by the CBN, the financial regulator said it will support the Federal Government in its effort against insecurity which has negatively affected the business environment of Nigeria.

Read also: More concerns for CBN, as currency speculators crash Naira to record low

It also stated that this will encourage business activities within the country and drive inflation down. The decline in headline inflation is the first in nineteen consecutive months of continuous rise.

The statement reads: “headline inflation remained well above the ceiling of the Bank’s 6-9 per cent inflation corridor as a result of a combination of factors, including: the heightened security tensions in the country and deteriorating public infrastructure.

“As a result, the Bank expressed its support to the Federal Government’s commitment to tackle insecurity as this will improve the business environment and encourage economic activities to reduce inflation.”

By Fakoyejo Ayodeji…

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