As expected the Consumer Price Index (CPI), inched higher to 8.4% in Feb 2015. This is not surprising given the, currency instability that Nigeria has been experiencing in the wake of the fallen oil prices. This 20bps upward shift vs January rates, is being induced by general increases in both food items and capital goods. The value of the Naira to USD has dropped by 12.5% from the beginning of the year to stand at N225/$1 as at 20th March 2015. This significant depreciation is a major inflation driver, given that Nigeria is an import driven economy.
Minty Flavours
Our review of the February 2015 inflation rate for the MINT economies reveal that Nigeria’s CPI followed last month’s trend by remaining the highest, as Mexico’s, Indonesia’s, & Turkey’s CPI stands at 3.00%, 7.53%, and 6.29% respectively. Of course, it is worthy of note that only Nigeria’s economy is solely dependent on oil revenue amongst the pack. This will definitely fuel doubts regarding the stability of Nigeria as an investment destination.
Inflation Outlook
In as much as the economy is taking commendable steps to defuse the shocks created by the fallen oil prices, we do not expect an immediate or short run reduction in inflationary pressures. Consequently, we expect a shy increase in inflation rate in March 2015 of not greater than 20bps, given the current volatile political climate
Our review of the February 2015 inflation rate for the MINT economies reveal that Nigeria’s CPI followed last month’s trend by remaining the highest, as Mexico’s, Indonesia’s, & Turkey’s CPI stands at 3.00%, 7.53%, and 6.29% respectively. Of course, it is worthy of note that only Nigeria’s economy is solely dependent on oil revenue amongst the pack. This will definitely fuel doubts regarding the stability of Nigeria as an investment destination.
Inflation Outlook
In as much as the economy is taking commendable steps to defuse the shocks created by the fallen oil prices, we do not expect an immediate or short run reduction in inflationary pressures. Consequently, we expect a shy increase in inflation rate in March 2015 of not greater than 20bps, given the current volatile political climate
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