Nigeria optimistic at reduction in the May inflation rate

Features & Reports

Nigerians expressed optimism that the reduction in the May inflation rate figure of 16.25 per cent would impact positively on the Nigerian Stock Exchange (NSE).

Wusu, the Head of Research Unit, SCM Capital Ltd, said the moderation in the headline inflation rate would have positive effect on consumer purchasing power thereby increasing activities in the nation’s bourse.

The moderation in the headline inflation rate by 94 basis points in the month of May and for the fourth consecutive month is a reflection of the base effects emanating from increased energy prices seen in mid-2016 coupled with the pressure on food prices.

It shows the positive impact of a strengthened Naira in the foreign exchange markets. The slower inflation rate was a sign of a decline in the rising cost of goods and services in the country.

NBS on June 15 published Nigeria’s Consumer Price Index (CPI) or inflation rate for the month of May, indicating the most significant fell since the downward slant began to 16.25 per cent year-on-year from 17.24 per cent in April.

Vanguard