FSDH Merchant Bank projects 11.29% inflation rate for March

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FSDH Merchant Bank has projected a further decline in the inflation rate to 11.29 percent in March. The inflation rate declined for two consecutive months from 11.44 percent in December to 11.31 percent in February, according to data from the National Bureau of Statistics (NBS).

“FSDH Research expects the March inflation rate to drop marginally to 11.29 percent from 11.31 percent in February 2019”, the bank said in its inflation watch report released on Friday. Banking hall The bank stated further: “If our estimate comes true for March 2019, it means that the first quarter of the year 2019 was a good quarter for the Nigerian economy as FSDH Research expects the inflation rate to drop further in March.

FSDH Research’s latest review of food prices and other major items that make up the Consumer Price Index (CPI) basket (alcohol beverages, clothing and footwear, housing, water, electricity, gas and other fuels and etc.) suggests that the inflation rate should reduce further in March. The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) cited the moderation in the inflation rate since January as one of the justifications for a cut in the interest rate in March 2019. “Our preliminary checks also suggest that imported inflation rate (i.e. prices of goods using imports as raw materials) lessened in March.

The marginal appreciation in the value of Naira in March compared with the relative stability in the prices of food items on the international market provided a gain on the prices of consumer items in Nigeria. “The increase in the global price of crude oil in March and increase in the inflow from the Foreign Portfolio Investment (FPI) led to the appreciation in the value of the Naira.

The value of the naira at end-March at N360.47 per dollar compared with end-February at N361.13 per dollar indicates that the value of the naira strengthened by N0.66.

“Although our expected inflation rate forecast is still higher than the target of the CBN, the relative low inflation rate may encourage the issuance of Commercial Papers (CPs) that will enable corporates to fund their short-term capital requirements

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Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

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