Macroeconomic Report & Economic Updates
May 3, 2016
Nigeria Economic Update (Issue 18)
Inflation
rate continued its upward trajectory in the week under review. Specifically,
the Consumer Price Index (CPI) increased by 1.39 per cent, from 11.38 per cent
in February to 12.77 per cent in March, 20161. Remarkably, this is the
highest rate since July 2012, representing a 4-year high. While both components
of the CPI rose in the period, the food sub-index was largely the main driver
of the increase in the CPI, with a growth rate of 1.39 per cent between
February and March. The persistent scarcity in petroleum products, especially
Premium Motor Spirit (PMS), has increased transportation costs and the price of
food items.
Related
Nigeria Economic Update (Issue 9)
Crude oil prices fluctuated during the
review week. OPEC weekly basket price decreased marginally from $53.63 on
February 24, 2017 to $53.34 on March 3, 2017. Similarly, Brent
crude declined (week-on-week) by 0.84 percent to $55.15, while
Bonny light decreased by 2.4 percent to $54.4 per barrel. During
the week, reports of Russias incomplete compliance to agreed production cut and
rising United States crude production/inventories, led to the
slight pressure exerted on oil prices. The uncertainties and volatility of
global crude oil price stresses the need for the government to channel efforts
at developing other key sectors of the economy, particularly the manufacturing
sector.