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For the 16th time in a row, the country's inflation declined to 11.4 percent in May, this year the lowest since 2016.
However, it has been shown that this has not been achieved. not effectively affect consumer commodity prices; BENJAMIN UMUTEME looks very closely at the scenario
Nigeria's inflation rate declined to 11.6% in May of 2018, down 0.82% from 12.48% recorded in April and slightly above market expectations of 11.4%.
This is the lowest inflation rate since February 2016, with prices for food and non-alcoholic beverages, housing and utilities, clothing and footwear, and transportation rising at a slower pace. The rise of May 2017 (m / m of inflation: 1.9%), inflation in May 2018 rising from 0.8% in April to 1.1% in April – the highest inflation m / m since July 2017.
Underlying inflation has decreased slightly on an annual basis, from 10.9% to 10.7%, but has increased on a monthly basis from 0, 9% to 1.0%
Food inflation also fell year on year – from 14.8% to 13.4%, but jumped from 0.9% to 1%. Due to the rise in inflation in m / m, the moderation of core annual inflation and diet results from the aforementioned basic effects.
The governor of the Central Bank of Nigeria (CBN), Mr.
Godwin Emefiele, had declared last year when the apex bank 's economic forecast for 2018 that he' s going to be in charge. expected at "very low double-digit or high-level levels this year, barring external shocks". The price of food and fuel had exploded 2016 due to falling international oil prices as well as a weaker currency that raised the prices of imported products in the country.
But in recent months thanks to innovative currency management, restrictions on some food imports the CBN's oil and supply production has been able to stabilize the economy.
But has much changed in the high prices of goods and services? Persistent price hike However, many Nigerians have questioned figures released by the Bureau of Statistics, saying it does not seem to reflect realities on the ground.
For the average Nigerian, the inflation figures could really fall
The monthly rise in food inflation persisted for the fourth consecutive month in May, compounded by the farmers, the clashes between the two countries. breeders in the Middle Belt region of the country and persistent Boko Haram attacks on farming communities in the region. The National Bureau of Statistics (NBS), in its inflation report for the compound feed index for the month of May, rose from 0.91% in April to 1.33% in May, the fourth consecutive monthly increase The NBS revealed that, on a monthly basis, however, Taraba, Adamawa and Enugu were the states with the highest food inflation during the month with 2.80, 2.38 and 2.3. 6% respectively, while Kogi, Oyo and Ekiti all recorded negative food price inflation during the month. This is in line with the projections of experts that the country may continue to decline, which could lead to higher food prices.
According to Mama Udo, as she is affectionately called by her neighbors at the Nyanya market, she has not yet understood the criteria used to measure the inflation rate
. She said, "My brother, if you talk to me about inflation, then the price of things should not go down."
We are still selling garri mudou for N150 and rice mudu for N650, " She asked.
This expectation stems from the fact that inflation means tight prices for goods and services and, consequently, a reduction in inflation (deflation) should also lead to lower prices, especially for foodstuffs. food. is a misunderstanding that the rise or fall in inflation does not depend solely on food prices; it is an average overall price of a basket of things
So while the prices of other items in the basket may have dropped, it seems that food prices do not crash.
MonyeEmina, "Food crop production is not going well in some farming communities because of the displacement of farmers that's not just peculiar to the Northeast." "Thus, the shortage of food supply is the main reason for Emina, Vetiva Research analysts said:" In terms of food prices, we highlight the ongoing violence in the middle belt and reported disruption agricultural activities such as rising food prices.
We are concerned that rising food prices are here to stay and that we are revising our inflation expectations accordingly. "While the federal government is consolidating In general, the advent of the rainy season is considered a time when food prices fall, but many are of the opinion that 2018 could be different. , prices for hairdressing and grooming salons, vehicle spare parts, fuels and lubricants for transportation equipment, books and stationery, domestic and household services increased, pharmaceuticals, paramedical services , medical services and passenger transport by road.
Okechukwu Michael is an engineer working in a construction company in Abuja.
He said: "I do not know that they are conducting their investigation but one thing that I know that it is certain that the prices of goods and services are still high.
Two weeks ago, my barber more than three years ago suddenly raised the price of a haircut to three hundred naira after constantly complaining that he was the only one among his colleagues to bill the lowest rate.
"Also, the price of the maintenance of my car has increased considerably.
Just last week, a colleague in my office lost his car battery to thieves and he had to painfully get rid of more than 30,000 N to buy a new one.
This was a battery we bought between N10 and N12 000 three years ago.
Possible Solution Talking with Blueprint Friday Efih, an economist, warned that if the government does not step down from its big horses and quickly attack the persistent attacks of shepherds and insurgents against farming communities (Boko Haram), commodity prices will eventually reach the
: "How long will it take for the government to realize that these attacks in the northeastern and the Middle Belt region of the country are gradually moving towards a situation where" l? food insecurity "its ins Tallera.
the next two years, there is m The government's "return to the farm" campaign may be that of a sound that means nothing. He went on to explain that the current exchange rate regime would always make it difficult for food prices to fall.
"It will be difficult to consider that most of what we consume in the country is imported.
And even when they are produced in the country, the cost of operation and others still make it For example, despite all the talk about the increase in local rice production, it is still not as cheap as the pre-harvest period of imported rice when it is difficult to sell the product. was sold at 8,000 N, he said.
Currently, 50 kg of Nigerian rice sells for about 16,000.
Analysts believe that if Nigeria starts manufacturing the majority of this that it consumes, the hopes of falling prices of goods and services mirage. [19659002]
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