The general rise in prices of goods and services inflation rate dropped lower to 17.78 per cent in February its lowest level in 15 months, the National Bureau of Statistics said. Inflation had risen to 18.72 percent in January, its 12th monthly rise and its highest level in more than 11 years, as the nation’s economy grapples with an economic recession, a currency crisis and dollar shortages, brought on by low oil prices, its main revenue earner.
CBN has increased dollar sales in recent weeks to importers to boost the naira. Nigeria has limited manufacturing capacity and depends on imports for local consumption. A separate food index showed inflation at 18.53 per cent from 17.82 per cent in January, the statistics office said in a report, pushed up by the rise in food staples such as bread, cereal and meat, while drink prices slowed.
Last week the government unveiled sweeping economic recovery plans, including measures to reduce its dependence on oil and to relax foreign exchange restrictions, in a drive to pull the economy out of its first recession in 25 years. It forecasts inflation to be at 15.74 percent at year-end and 12.42 percent in 2018, which if achieved, could alleviate widespread frustration with living costs, analysts say.
