Friday, 30 January 2015

Naira Depreciation Could Trigger Inflation






 The National Bureau of Statistic (NBS) says contrary to widespread speculations that increased pressures on prices could result from the election period, inflation could actually be caused by the recent depreciation of the Naira.

It said a review of historical time series in the current democratic dispensation showed little evidence that inflation could be influenced, to a large extent by election activities.

The NBS, in its 2014 Economic Review and 2015-2017 Outlook also said it expected the Nigerian economy to grow by 5.5 percent in 2015 helped by the non-oil sector, which is expected to drive growth.
It added that growth is expected to average 5.7 per cent in 2015 through 2017.

The statistical agency also projected inflation at 8.8 per cent in 2015 and expects it to remain moderately stable averaging 8.13 per cent over the 2015 to 2017 period.

The NBS said the impact of declining crude oil prices was likely to result in a decline in the value of oil exports, over the forecast period, although exports are expected to be positive in the near term.

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