Inflation Rises, Moves from 12.13% to 12.20%
With inflation peaking at 12.20 per cent in February, compared to 12.13 per in the previous month, analysts have urged the federal government to facilitate cheaper domestic credit to the economy.
They tasked the federal government to tackle the root causes of rising inflation, as inflationary pressures continue to distort macroeconomic indices amidst bleak prospects in the global economy caused by the COVID-19 pandemic.
The Consumer Price Index (CPI), which measures inflation, increased to 12.20 per cent (year-on-year) in February compared to 12.13 per cent in the preceding month, according to the data released yesterday by the National Bureau of Statistics (NBS).
Food inflation increased to 14.90 per cent compared to 14.85 per cent in January witnessing increases in prices of bread and cereals, fish, meat, vegetables and oils, and fats.
In their reactions, the analysts, who spoke in separate interviews with THISDAY yesterday, asked both the monetary and fiscal authorities to address issues relating to general insecurity nationwide, the land border closure and high cost of funds in the economy.
They called on the government to boost credit access to the productive sectors of the economy, particularly agriculture, services and manufacturing and pursue economic diversification with urgency.
The experts warned that unless managed properly, the fallout from the COVID-19 pandemic could worsen price instability in the country.