Nigerian inflation reached its lowest since November 2020 that eased pressure on the Central Bank of Nigeria to increase the borrowing costs. In comparison to the 15.99% consumer price in October, it went to 15.4%, as opposed to the estimate of 15.3%, by the Bloomberg survey by nine economists.
With the Omicron virus spread eventually causing the Nigerian economy to crimp, the borrowing cost will be increased by the Central Bank. According to the Statistician-General Simon Harry, this drop occurred due to the slowdown of food price growth from 18.3% in October 2021 to 17.2% in November 2021.
The Central Bank of Nigeria said that it is expecting improved security in Northern Nigeria, which has been struggling with insurgency incidents for over a decade and a good harvest. This will enable the price growth to slow down after its peak in March. However, with year-end holiday festivities taking the spending on the upward trend in December, the number is expected to slow down in 2022.
Ikemesit Effiong, head of research at SBM Intelligence on the inflation slows down, stated that “We anticipate inflation numbers in 2022 to continue to slow down, after the halt in December 2021,” he said. “This decline will, however, be muted by political spending as Nigeria heads into another election cycle.”
This inflation slows down is anticipated to witness the monetary policy committee organize its key interest rate the following month to assist in bouncing back Nigeria’s economy that suffered greatly due to the travel ban owing to the Omicron virus.