JUST-IN: Despite CBN’s Monetary Tightening Policy, Inflation Rises Further To 20.77%
Despite the monetary tightening agenda of the Monetary Policy Committee of the Central Bank of Nigeria, which led to squeezing of liquidity from banks vault, the inflationary pressure has continued to rise based on the latest data from the National Bureau of Statistics.
The CBN had in response to the rise in prices recently raised the Monetary Policy Rate by 150 basis points to 15.5 per cent from 14 per cent.
The CBN also raised banks’ Cash Reserve Requirement by 750 basis points to a minimum of 32.5 per cent, from 27.5 per cent, in order to mop up liquidity from banks’ vaults and discourage currency speculation.
But despite these measures, the year–on-year inflation rate for the Month of September rose to 20.77 per cent.
This was 4.14 per cent points higher compared to the rate recorded in September 2021, and higher than the 20.52 per cent recorded in August 2022.
The Report reads, “In September 2022, on a year–on- year basis, the headline inflation rate was 20.77 per cent. This was 4.14 per cent points higher compared to the rate recorded in September 2021, which was (16.63 per cent).
“This indicates that in the month of September 2022 the general price level was 4.14 per cent higher relative to September 2021.
“On a month-on-month basis, the Headline inflation rate in September 2022 was 1.36 per cent, this was 0.41 per cent lower than the rate recorded in August 2022 (1.77 ler cent).
“This means that in the month of September 2022, the headline inflation rate (month–on–month basis) declined by 0.41 per cent, relative to August 2022.”
The NBS listed the factors that led to the rising inflation to include disruption in the supply of food products, increase in import cost due to the persistent currency depreciation and general increase in the cost of production.