According to the Bureau of Statistics, the consumer price index which measures inflation rose 12.9% year on year for April 2012. This was 0.8% higher than the inflation rate of 12.1% in March 2012. The Statistics Bureau attributes this increase to lower price levels in April 2011 which it believes influenced the change in price levels a year after. This makes sense as month to month rise in inflation was pretty much moderate as the Consumer Price Index rose just 0.13% between March and April 2012. Compare that to the period between February and  March 2012 which rose 1.6%.

Double digit inflation rates is till very bad for the economy with interest rates approaching at all time high. I expect the CBN to continue tightening monetary policy as they fight to stave of inflation. I do not expect them to raise MPR from the current rate 12% as any decision to do so with have negative effects on the wider economy. I expect the CBN to derive comfort in the fact that changes in month to month inflation was almost static meaning prices were basically stable. Food prices which constitute a major component of the basket used in measuring inflation were also up just 0.2%. This should please the CBN.

See Inflation Report Here


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.