CBN Raise Alarm Over Inflation Rate Risks
Naira and Dollar exchange photot: Alfa img

Governor of the Central Bank of Nigeria (CBN) Godwin Emefiele has stated that the country may experience a return of the fall in inflation.

Emefiele said this on Monday in a communique at the Monetary Policy Committee meeting of May 21 and 22.

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“For a few analysts, the observed moderation in inflation rate provides justification for policy ease; however, the prevailing realities, especially the double-digit inflation and elevated short-term inflation expectations, do not support this,” he said.

“While the trend of disinflation is encouraging, the observed moderation in inflationary pressure is, however, threatened by waning base-effects and the liquidity injections anticipated in the second-half of the year. It is, therefore, imperative to ensure that the path of disinflation is not reversed.”