Nigeria Continues To Experience Rise In Reserves As Inflation Recedes
 11th OCT 2006

The Central Bank of Nigeria (CBN) has said the inflation rate in the country has dropped by two percent from 15.5 percent in June this year to 13.5 percent at the end of July. The CBN also said in its July 2006 economic report that Nigeria’s external reserves rose from $36.48bn to $38.07bn during the period under review. The apex bank said the current reserves level was capable of financing 31.9 months of imports at the current rate of foreign exchange commitments in the country.

Explaining further on the level of inflation, the report noted that on a yearly basis the rate stood at 3.0 percent compared with 8.5 percent in the preceding month, attributing the decline to increased harvest of agricultural produce such as yam, cocoyam, maize, fruits and other vegetables. It added: “This factor coupled with the sound macro-economic policies adopted by the government during the year had dampening effect on food prices.” The report said data from the National Bureau of Statistics (NBS) showed that all items composite consumer Price Index (CPI) for July 2006 stood at 157.5 (May 2003-100), representing an increase of 2.0 and 3.0 percent over the 154.4 and 152.9 recorded in the preceding month and corresponding period of 2005 respectively.

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