CBN Projects Inflation To Increased By 11.4%
The Central Bank of Nigeria, CBN is projecting that Nigeria’s inflation will rise to about 11.4% for the rest of this year till mid-2019.
The CBN Governor, Godwin Emefiele, disclosed this while speaking on Nigeria’s outlook and policy thrust for 2019.
According to Emefiele, “inflation expectations are rising on the backdrop of anticipated politically related liquidity injections. For the rest of 2018 and towards mid-2019, Nigeria’s rate of inflation is projected to rise slightly to about 11.4% and then moderate thereafter”.
The consumer price index, which measures inflation decreased to 11.26% (year-on-year) in October 2018, according to latest report by the National Bureau of Statistics, NBS on its ‘CPI and inflation report October 2018’.
The statistics revealed that this was a 0.02% point lower than the rate recorded in September 2018, 11.28%.
While speaking on the exchange rate, he said that although the CBN had so far managed to maintain exchange rate stability, the current capital flow reversals from emerging markets were expected to continue to exert considerable pressure on market rates.
This pressure, he added, could be amplified by the forthcoming elections, especially as the political marketplace heats up.
He said notwithstanding those pressures, the CBN was determined to maintain its stable exchange rate policy stance over the next few months, given the relatively high level of reserves.
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