CBN Governor, Sanusi Lamido Sanusi
Despite various stringent monetary tightening measures implemented by the Central Bank of Nigeria (CBN) to tame inflationary pressure in the country, the general price level of goods and services have continued to rise.
The inflation report released by the National Bureau of Statistics (NBS), a copy of which was made available to THISDAY Thursday, revealed that the composite Consumer Price Index (CPI), which is used to gauge inflation level in the country, rose to 12.4 per cent in May 2011. The latest CPI figure was higher than 11.3 per cent recorded in April, even as it represented a 0.91 percent increase when compared with the preceding month’s figure.
Worried by rising inflationary pressure in the country, the Monetary Policy Committee (MPC), which is chaired by the CBN Governor, Mallam Sanusi Lamido Sanusi, had surprisingly raised the Monetary Policy Rate (MPR) from 7.5 per cent, to 8 per cent at its last meeting. The Committee which also lifted the Cash Reserve Requirement (CRR) had expressed its desire to battle inflation which has stubbornly remained at double digits, to single digit rate.
Most analysts attributed the hike in inflation to the rise in price of some household items, building materials and rents. They specifically pointed out that the high cost in kerosene and diesel contributed to the significant rise recorded in the CPI.
The NBS report added: “The urban ‘All Items’ monthly index rose by 0.2 percent while the corresponding rural index rose by 1.5 percent when compared with the preceding month. The year-on-year average consumer price level as at May 2011 for Urban and Rural dwellers rose by 11.5 and 13 percent respectively.
“Thepercentage change in the average composite CPI for the twelve-month period ending May 2011 over the average of the CPI for the previous twelve-month period was 12.6 per cent. This was slightly lower than the figure for the preceding month. The average monthly food prices declined by 0.3 percent in May 2011 compared with April 2011 figure. The level of the Composite Food Index (CFI) was higher than the corresponding level a year ago by 12.2 percent.”
In a related development, in line with its position that only permit by the Department for Petroleum Resources (DPR) will be allowed for the importation of petroleum products, the CBN has taken steps to enforce the policy. The apex bank has scheduled a meeting for all operators to be held in Lagos on Tuesday.
Accordingto a notice to all operators signed by the CBN Director, Trade and Exchange Department, Mr. Batari Musa, a copy of which was posted on its website, “representation to the meeting from each bank shall be a maximum of two staff that must be from Trade Services and International Operations Departments.”
Despite various stringent monetary tightening measures implemented by the Central Bank of Nigeria (CBN) to tame inflationary pressure in the country, the general price level of goods and services have continued to rise.
The inflation report released by the National Bureau of Statistics (NBS), a copy of which was made available to THISDAY Thursday, revealed that the composite Consumer Price Index (CPI), which is used to gauge inflation level in the country, rose to 12.4 per cent in May 2011. The latest CPI figure was higher than 11.3 per cent recorded in April, even as it represented a 0.91 percent increase when compared with the preceding month’s figure.
Worried by rising inflationary pressure in the country, the Monetary Policy Committee (MPC), which is chaired by the CBN Governor, Mallam Sanusi Lamido Sanusi, had surprisingly raised the Monetary Policy Rate (MPR) from 7.5 per cent, to 8 per cent at its last meeting. The Committee which also lifted the Cash Reserve Requirement (CRR) had expressed its desire to battle inflation which has stubbornly remained at double digits, to single digit rate.
Most analysts attributed the hike in inflation to the rise in price of some household items, building materials and rents. They specifically pointed out that the high cost in kerosene and diesel contributed to the significant rise recorded in the CPI.
The NBS report added: “The urban ‘All Items’ monthly index rose by 0.2 percent while the corresponding rural index rose by 1.5 percent when compared with the preceding month. The year-on-year average consumer price level as at May 2011 for Urban and Rural dwellers rose by 11.5 and 13 percent respectively.
“Thepercentage change in the average composite CPI for the twelve-month period ending May 2011 over the average of the CPI for the previous twelve-month period was 12.6 per cent. This was slightly lower than the figure for the preceding month. The average monthly food prices declined by 0.3 percent in May 2011 compared with April 2011 figure. The level of the Composite Food Index (CFI) was higher than the corresponding level a year ago by 12.2 percent.”
In a related development, in line with its position that only permit by the Department for Petroleum Resources (DPR) will be allowed for the importation of petroleum products, the CBN has taken steps to enforce the policy. The apex bank has scheduled a meeting for all operators to be held in Lagos on Tuesday.
Accordingto a notice to all operators signed by the CBN Director, Trade and Exchange Department, Mr. Batari Musa, a copy of which was posted on its website, “representation to the meeting from each bank shall be a maximum of two staff that must be from Trade Services and International Operations Departments.”
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