Nigeria's inflation rate drops to 11.31% in February 2019

Nigeria's inflation rate dropped to 11.31% in February 2019 from 11.37% recorded in January 2019.
The decline is the second consecutive drop in 2019.
Nigeria is eyeing single digit inflation rate.

Nigeria's inflation rate dropped to 11.31% in February 2019 from 11.37% recorded in January 2019, the National Bureau of Statistics (NBS) has said.

The Bureau, in its “CPI and Inflation Report’’ for February 2019 released in Abuja on Friday, said the figure was 0.74% points lower than the rate recorded in January 2019.

According to NBS, increases were recorded in all consumption that yielded the headline index.

“On a month-on-month basis, the Headline index increased by 0.73% in February 2019, this is 0.01% rate lower than the rate recorded in January 2019 (0.74%)

“The percentage change in the average composite CPI for the twelve months period ending February 2019 over the average of the CPI for the previous twelve months period was 11.56%, showing 0.24% point from 11.80% recorded in January 2019.

"The urban inflation rate increased by 11.59% (year-on-year) in February 2019 from 11.66% recorded in January 2019, while the rural inflation rate increased by 11.05% in February 2019 from 11.11% in January 2019,” the report states.

This means that the general level of prices of goods and services slowed in the February. Its effects are mostly on the purchasing power, loan repayment and country's exchange rate through depreciation.

While eyeing a single digit inflation rate, the Central Bank of Nigeria (CBN) has held key lending rates at a record high 12% to tame rising inflation and support the naira.

The CBN governor, Godwin Emefiele's tenure expires in June, if not re-appointed, it is not certain which monetary policy direction the new governor will take.