inflation

Agency report

Advertise With Us

A financial expert, Dr Uche Uwaleke, on Saturday predicted that inflation rate may rise to 19 per cent in December.

Uwaleke, the Head of Banking and Finance Department, Nasarawa State University, Keffi gave the prediction in an interview with the News Agency of Nigeria in Lagos.

He was reacting to the November inflation figure which stood at 18.48 per cent.

Uwaleke said that headline inflation would likely stay around 19 per cent in December due largely to increase in clothing, food energy and transport costs.

He said that December was usually associated with fuel scarcity, adding that 2016 would not be different particularly in the remote towns and villages.

Uwaleke advised the Federal Government to check the trend, especially against the backdrop of an inflation target of 12.9 per cent in the 2017 budget.

He said government should commit itself and ensure strict implementation of the 2017 budget with respect to power, housing, transport and agriculture in particular.

On November inflation figure, Uwaleke said that the rise from 18.33 per cent in October to 18.48 per cent in November was due to increase in food items, clothing and transportation cost.

“It is no surprise that headline inflation is still climbing especially as the festive season approaches.

“From an investment point of view, the rise in Consumer Price Index further plunges real returns in the negative territory.

“This is not good news for the stock market. However, the consolation for stock market investors is the positive impact the oil price rebound is having on the market in recent times,’’ he said.

The National Bureau of Statistics (NBS), on Dec. 15 said the Consumer Price Index (CPI), increased to 18.48 per cent (year-in-year) in November from 18.33 per cent recorded in October.

The CPI, which measures inflation, is 0.15 per cent points higher from the points recorded in October.

The report released by the NBS noted that the increases were recorded in all Classification of Individual Consumption by Purpose (COICOP), divisions that yield the Headline Index.