Access Bank Projects 12.38% Inflation Rate Amid Covid-19 Pandemic.
ANGEL JAMES
With the COVID-19 pandemic that has triggered a dislocation in businesses and lifestyle. Access Bank Economic Intelligence Unit has projected the Inflation rate for March 2020 to slightly increase to 12.38% from 12.20% recorded in February.
The pandemic has forced lockdown all over the world with governments around the world ordering their citizens to stay at home to prevent further spread of the virus. This has caused disruption in economic activities, and in effect pushed up prices of food and essential items
Access Bank projection is coming ahead of the Nigerian Bureau of Statistics (NBS) which is expected to release the inflation figure by April 15, based on the data release calendar available on the bureau’s site.
The NBS in its consumer price index, (CPI) which measures inflation released March 17 increased by 12.20 percent (year-on-year) in February 2020. This is higher than 11.92 percent reported in January 2020, while the corresponding rural inflation rate in February 2020 is 11.09 percent compared to 11.04 percent recorded in January 2020.
According to the bank, the rise reflects the current economic happenings. The ongoing Convid 19 pandemic, shutdown of non-essential services, energy price drop, sustained insecurity levels in certain food-producing states have yielded an increase in inflation rate in March. Prices of foods and non-alcoholic beverages the largest component in the consumption basket with a weight of 51.8% sustained a variegated trend similar to preceding months. Consequently, prices of garri, rice, yam, potatoes, and other food items upturn while energy prices fruits, tomatoes, chicken proved otherwise.
Between February and March-end, Naira depreciated by N21.13/$ to N386.51/$ on from N365.38/$ at the Nigerian Autonomous Foreign Exchange Fixing (NAFEX) market largely owing to the price adjustment by the CBN.
Pump prices further decreased to N123.50 per litre from N145per litre. Food prices and transportation costs have marginally deviated month-on-month.
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