Nigeria reports first drop in inflation rate in 15 months, as January records 17.78%

The National Bureau of Statistics (NBS) has released the latest inflation rate, indicating the first slowdown in the inflationary trend in the past 15 months.

The report released Tuesday showed that Nigeria’s headline inflation rate dropped by 94 basis points to 17.78 per cent in February 2017 as against 18.72 per cent recorded in January 2017.

Read also: Despite CBN policy, Nigeria’s inflation keeps rising, hits 18.72%

The decline represents the first time in 15 months that the headline inflation has declined on a year-on-year basis, as a result of slower rises in already high food and non-food prices and favourable base effects over prices in 2016.

However, the food sub-index increased by 18.53 per cent in February compared with 17.82 per cent in January, driven by increases in prices of major food items.

Analysts said the slower inflation rate is a sign of a decline in the rising cost of goods and services in the country and this is expected to have a positive effect on consumer purchasing power.

According to the statistics office, the month’s lower inflation has “been driven by a moderate rise in general price levels of goods and service.”

 

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