April inflation may accelerate to 34.25% – Rewane

The speculation over the return of fuel scarcity may likely drive inflation rate to 34.25 per cent in April, Bismarck Rewane has said.

Rewane who is the Chief Executive Officer (CEO) of the Financial Derivatives Company (FDC) Limited said, “Nigeria’s inflation, a significant indicator, has remained stubbornly high, with no clear sign of abating any time.

“Our estimation showed that the Consumer Price Index (CPI) will increase to 34.25% in April from 33.20% in March.

“This expected increase in inflation was adversely affected by the return of petrol scarcity which pushed up prices”.

Rewane, in the FDC Splash current edition explained that the rate has the potential of distorting the estimate in the margin of error.

He said, additionally, this high inflation trend is often observed between March and May due to the planting season. However, the headline inflation has remained elevated since February 2022 and has continued to rise throughout the first quarter of 2024.

Food inflation is expected to rise by 0.97 per cent to 40.98 per cent, compared to an increase of 40.01bper cent in March.

Conversely, core inflation is expected to decline marginally by 0.62 per cent to 25.28 per cent in April from 25.90 per cent in March.

“This projection is primarily supported by the relatively stable exchange rate in April and moderating logistics costs (lower diesel prices)”, said the publication.

“The sustained increase in inflation expectations will continue to be a significant consideration by the monetary authority in deciding the direction of the monetary policy rate,” he said.