Tuesday , June 15 2021
Nigeria’s Inflation Rate Drops to 18.12%, Experts React

Nigeria’s Inflation Rate Drops to 18.12%, Experts React

Nigeria’s rate of inflation dropped to 18.12 percent in April 2021, the National Bureau of Statistics (NBS) said on Monday

It was 18.17 per cent in March, shedding 0.05 per cent to close at 18.12 in April.

The NBS said: “The Consumer Price Index, which measures inflation increased by 18.12 per cent (year-on-year) in April 2021.

“This is 0.05 per cent points lower than the rate recorded in March 2021 (18.17 per cent).”

The 0.05 per cent drop in April 2021 was the first time Nigeria’s inflation rate would fall in about 20 months as the last time it fell was in 2019 when the CPI shed 0.06 per cent, falling from 11.08 per cent in July to 11.02 in August.

In its April 2021 inflation report, the NBS stated increases were recorded in all Classification of Individual Consumption by Purpose divisions that yielded the headline index.

On month-on-month basis, the headline index increased by 0.97 per cent in April 2021, this was 0.59 percl cent rate lower than the rate recorded in March 2021 (1.56 per cent).

The percentage change in the average composite CPI for the 12 months period ending April 2021 over the average of the CPI for the previous 12 months period was 15.04 per cent, showing 0.48 per cent point from 14.55 per cent recorded in March 2021.

The urban inflation rate increased by 18.68 per cent year-on-year in April 2021 from 18.76 per cent recorded in March 2021, while the rural inflation rate increased by 17.57 per cent in April 2021 from 17.60 per cent in March 2021.

On a month-on-month basis, the urban index rose by 0.99 per cent in April 2021, down by 0.61 the rate recorded in March 2021 (1.60 per cent).

ALSO READ: Banks, Others Borrowing from CBN Hits 4.4 Trillion in Four Months as Deposit Drops by 27%

The rural index also rose by 0.95 per cent in April 2021, down by 0.57 the rate that was recorded in March 2021(1.52 per cent).

The corresponding 12 month year-on-year average percentage change for the urban index was 15.63 per cent in April 2021.

This was higher than 15.15 per cent reported in March 2021, while the corresponding rural inflation rate in April 2021 was 14.48 per cent compared to 13.99 per cent recorded in March 2021.

Reacting to this, financial expert and Kwara state Former Commissioner of Budget and Economic Development, Mr. Wasiu Odewole stressed that the breakdown by NBS is just to cover the government inability to govern the country and manage our economy well.

He said, “Security challenges that is causing the problems is still on rise and the Naira, of course, had officially been devalued. Meaning that, the cost of living is on the rise and high more than January to March.

According to him,  “We are deeply in a mess in our country today with rising debt profile, inflation, insecurity, tribal war and a devalued economy.”

He emphasized, “You should note that, the Government Two years or Six-year scorecard must be on the table for now and the only way to save their faces is to propound economic ‘abracadrabra’ to justify they have been in power when things are not working as expected.”

In addition, the Executive Director of D-Positive Global Consult, Dr. Nasir Abdulqudir said, “The NBS is one of the problems we have in this country always giving wrong data on inflation when the situations on ground doesn’t support their analysis.”

According to him, “The current government has failed Nigerians focusing on the National Gross Domestic Product  (GDP)and foreign debts on the rise.

“So inflation cannot to have dropped when there is no balancing on forces of demand and supply in the market.

“Most Nigerians have cut down their standard of living because of the unbearable prices of commodities resulting to insecurity everywhere.”

About Bukola Olanrewaju

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