Inflation Rate Halts Downtrend as MPC Has More to Worry About

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After eight consecutive declines in the Consumer Price Indicator (CPI), the Headline Inflation rate rose by 23bps to 15.63% in December 2021 from 15.4% in the prior month, according to the official data released from the Nigerian Bureau of Statistics (NBS) on Monday.

The increase in Headline Inflation was driven by the surge in consumer spending following the December festive season, security concerns and depreciation of Naira in the FX market as the two sub-indexes rose year-on-year.

As the Monetary Policy Committee (MPC) is set to hold its 283rd meeting and the first in 2022, the 10-members of the committee is expected to meet on Monday, January 24, 2022, and Tuesday, January 25, 2022.

Meanwhile, we took out time to look into what could be the committee’s consideration that will direct their decision to either tighten, hold or lose the Monetary Policy Rate (MPR) and other parameters.