Headline inflation slid by 0.07% to 11.37% in January as a result of lower food inflation. At the current level, inflation is still a threat to macroeconomic stability but the trend must be comforting to policy makers and relief to politicians in office who are vulnerable to rising inflation. Another data point released earlier in the week showed an increase of 2.38% in Q4 gross domestic product (GDP) – annualized at 1.93%.
Even though, it is below the population growth rate (2.6%), the trend of increasing GDP growth is another piece of comforting news for policy makers.
In the attached bulletin, the FDC Think-Tank analyzes the January inflation numbers and GDP statistics for Q4 and its implications.
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