HURRAY! Prices Of Goods Are Falling
This may be the beginning of good things to come.
The National Bureau of Statistics on Tuesday released its 2017 February Consumer Price Index which has shown that Nigeria’s inflation rate increased by 17.78% for the period under review.
You may remember how Nigerians all cried to God in January when Inflation rates were 18.72% and prices of food items kept rising.
So this is good news because this is the first time that inflation rate has dropped in 15 months.
Here are other things you also need to know about the drop in inflation:
1. The drop in inflation is mainly due to a significant drop in what is referred to as the ‘Core Inflation Sub-index.’ This core inflation, which includes every item except food, rose the slowest at 16%.
2. This is also great news because a slower inflation rate means a decline in the rising cost of goods and services in Nigeria. In real terms, it means your cash will now be able to buy more.
3. Interest rates on loans and advances may start to drop in the next couple of months.
4. According to Nairametrics, this drop could also signal a rise in Real GDP growth rate. This could mean Nigeria could be out of recession as early as the first half of 2017.