Experts at FSDH, a Lagos based research firm have predicted further decline in inflation rate to 16.52 per cent in March 2017.
The National Bureau of Statistics (NBS) is expected on April 15, 2017 to release the inflation rate for the month of March 2017. NBS had announced 17.78 per cent inflation rate in the month of February 2017.
FSDH attributed the decline in inflation rate to slower increases in the food and non-food divisions than previous months coupled with the base effect of the higher prices in the CCPI in March 2016 than the current month.
They explained that monthly Food Price Index (FPI) and the Food and Agriculture Organization (FAO) released of recent shows that the Index averaged 171 points, 2.75 per cent lower than the revised value for February 2017, but 13.39 per cent higher than the March 2016 figure.
The report according to FSDH stated that the drop in the value of the Index was mainly attributable to the sharp decline in the prices of sugar and vegetable oils.
According to FSDH, “Our analysis indicates that the value of the Naira depreciated at the inter-bank market, while it appreciated at the parallel market. The Naira lost by 0.28per cent at the inter-bank market to close at $/N306.35 while it gained 13.42per cent at the parallel market to close at $/N395 at the end of March.
“The decision of the CBN to increase Dollar supply led to the appreciation in the value of the Naira in the parallel market. The Naira appreciation and drop in the prices of food at the international market led to a drop in the prices of consumer goods in Nigeria.” The prices of food items that FSDH Research monitored in March 2017 moved in varying directions.