Following the recent report of the consumer price index (CPI), the Special Adviser to the President on Economic Matters, Tope Fasua, believes Nigeria’s headline inflation is headed towards a single-digit figure.
Fasua, who appeared on Channels Television’s Morning Brief on Tuesday, September 16, expressed optimism that the continued drop in inflationary pressure would translate to better living conditions for Nigerians.
The presidential aide explained that the rebasing of the CPI gave the true picture of where the country’s inflation figure stands.
He said the most important thing is that the rebasing was done several months back, and inflation has consistently dropped.
READ ALSO: Nigeria’s Inflation Rate Drops to 20.12% in August — NBS
“Inflation does not increase forever, not in any country. We have Ghana next to us, with inflation up to 40 per cent. Today, their inflation is trending down to a single digit.
“Nigeria’s inflation will get to a single digit as well; it’s a matter of time,” Fasua said.
Pinnacle Daily reported that the National Bureau of Statistics (NBS) released the monthly inflation figures, stating that headline inflation eased to 20.12 per cent in August, from 21.88 per cent in July.
According to him, a 20.12 per cent inflation is still large in many quarters because prices are still increasing in some quarters, but not as they used to be.
He said, though the rebasing exercise came in about six years after it ought to have been done, the concern now should be that the statistics and data should be on point and frequent.
READ ALSO: Inflation Decline in Nigeria Brings Little Relief
“Pakistan’s economy experienced inflation of up to 40 per cent some two years ago. Today, they are battling deflation, which is even a bigger issue because when there is no incentive for people to produce more goods themselves, everything goes down again.
“Nigeria’s inflation will certainly go to a single digit. Besides, that’s not the only positive thing we can see,” Fasua said.
Naira gaining against the dollar
Commenting on the naira appreciating to the N1,400 region, including the increase in crude oil prices at the international market, he noted that after yesterday’s trading, the naira appreciated to N1,497 to $1.
This came for the first time in about eight months, he said.
“And if we look at why the inflation is reducing, for anybody that cares to know, of course, crude is one of our key drivers of inflation.
“The exchange rate is also another key driver. The exchange rate has stabilised, and it’s actually via market forces,” Fasua maintained.
He asserted that this development has started to cause a drop in the prices of agricultural products.
He said Nigerians, including farmers, are enjoying the drop in food prices because the naira is much more stable.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
