Despite the Central Bank of Nigeria’s (CBN) decision to maintain its benchmark interest rate at 11.5%, inflation continues to rise, raising questions about the effectiveness of the Consumer Price Index (CPI) rebasing exercise. Naija247news reports that the latest inflation figures, released by the National Bureau of Statistics (NBS), show a steady climb, with the headline inflation rate reaching 18.3% in October, up from 17.9% in September.
Thank you for reading this post, don't forget to subscribe!According to Naija247news, the CBN’s Monetary Policy Committee (MPC) opted to hold rates during its recent meeting, citing the need to support economic recovery amid global uncertainties. However, economists and analysts have expressed concerns that the decision may further exacerbate inflationary pressures, particularly as food and energy prices continue to soar.
Naija247news gathered that the CPI rebasing exercise, which was introduced in 2019 to reflect current consumption patterns, has come under scrutiny for its perceived limitations. Critics argue that the rebasing fails to adequately capture the realities of rising costs, particularly for low-income households. “The CPI rebasing was a step in the right direction, but it has its limitations. It doesn’t fully account for the volatility in food prices and other essential commodities,” said Dr. Ayo Teriba, an economist who spoke to Naija247news.
Naija247news understands that the persistent inflation has had a severe impact on Nigerians, with many struggling to afford basic necessities. Market surveys conducted by Naija247news revealed that prices of staples such as rice, beans, and cooking oil have increased by over 30% in the past year. According to Naija247news, this has led to widespread frustration among consumers, who feel that government policies are not addressing their plight.
The CBN, in its defense, has maintained that its current monetary policy stance is necessary to stimulate growth and attract foreign investment. “We are mindful of the inflationary pressures, but our primary focus is on achieving sustainable economic recovery,” said CBN Governor Godwin Emefiele during the MPC briefing.
According to Naija247news, the debate over CPI rebasing has also highlighted the need for more comprehensive data collection and analysis. Experts have called for periodic reviews of the CPI framework to ensure it remains relevant and reflective of current economic realities.
As inflation persists, Naija247news gathered that stakeholders are urging the government to adopt a multi-faceted approach to address the crisis. Recommendations include increasing local production, improving supply chains, and implementing targeted interventions to support vulnerable populations.
For now, the limits of CPI rebasing and the CBN’s policy decisions remain at the center of Nigeria’s inflation debate.
