Nigeria's July inflation down to 16.05%

Nigeria's National Bureau of Statistics has recently released the inflation report for July 2017, indicating a slight decrease in inflation to 16.05% year-on-year compared to 16.10% in the previous month. Gbite Oduneye, CEO of A & O Acquisitions, shared his insights on the state of the economy in an interview with CNBC Africa. Oduneye highlighted the positive trajectory of the inflation rate, but also expressed concerns about the persistent rise in food prices, particularly as the festive season approaches. The food inflation index showed a 20.28% increase in July, up from 19.9% in June, reflecting challenges in the agricultural sector and supply chain issues that are impacting consumers. Despite the gradual decline in overall inflation, Oduneye emphasized the complexities of the economic landscape and the uncertainties that could influence future inflation trends. He suggested that improvements in forex policies and increased market confidence could lead to more significant reductions in inflation rates in the coming months. However, he cautioned that the timeline for seeing tangible effects on consumer prices, especially for essential goods like food, might be delayed due to lingering economic challenges. While Oduneye remained cautiously optimistic about the prospects of reaching the Central Bank's inflation target of 12%, he underscored the need for continued monitoring and policy interventions to stabilize prices and support economic recovery. As Nigeria navigates through a volatile economic environment, the focus remains on addressing inflationary pressures while promoting sustainable growth and resilience in the market.