FDC ECONOMIC BULLETIN – APRIL 07, 2017 (Re: Inflation expected to slide further to 16.4% in March )

The FDC Think Tank forecasts a decline in the headline inflation rate to 16.4% in March, this directional movement is in line with analysis consensus. The dramatic decline in inflation is as a result of further erosion of 2016 base year effects.

Catalysts for the inflationary trend in Nigeria have become moderating factors as a result of policy shifts and increased supply in the FX market. The CBN’s aggressive intervention in the FX market led to an appreciation in the naira and fed into retail prices.

However, if the naira weakens again, price inflation is likely to reverse direction.

In the attached bulletin, the FDC Think-Tank analyses price movements in March.