The Guardian
• Surging food prices push inflation to 15.63%, first increase after eight months of decline
• Rewane expects inflation to remain high half year
• Intra-party campaigns will increase pressure, says Owoh
After eight months of decline, Nigeria’s headline inflation rate rose to 15.63 per cent in December 2021, from 15.50 per cent recorded in November. This was disclosed, yesterday, by the Statistician-General of the Federation, Simon Harry, during a press briefing at the National Bureau of Statistics (NBS), Abuja.
Earlier data from the NBS showed that headline inflation has been on a downward trajectory since April 2021. However, the trend was broken in December when month-on-month (MoM) inflation climbed 0.23 points higher than figure recorded in November.
Nigeria’s headline inflation realigned with global concerns over rising prices of essential commodities, leaving the Monetary Policy Committee (MPC) with hard choices as they meet next week.
The seeming return of a faster inflation rate comes about a week to the first meeting of the MPC in 2022. The meeting is scheduled for January 24 and 25, and it will see the committee members debate and vote for holding, reducing or increasing the going Monetary Policy Rate (MPR).
The policy rate was last reduced by 100 basis points in September 2020. The MPC battled against the tide and resisted the pressure to increase the interest rate last year amid troublesome inflation.
The members, in some of the meeting communiqué, admitted that they were in a fix between a tightening rate to control inflation and an expansionary rate that would stimulate growth.