Business
Nigerian inflation falls to more than 3-year low
Bank governor Lamido Sanusi has expressed concerns about the global economic downturn and the likely impact on demand for Nigeria’s crude oil, its main source of foreign currency.
“Looking forward, we expect consumer price index (CPI) inflation to remain around current levels over the coming months, which we believe will provide some level of comfort to the bank’s Monetary Policy Committee,” said Andrea Masia, research analyst at Morgan Stanley.
The headline inflation figure was the lowest since a reading of 8.2 percent in April 2008.
Increased liquidity is expected to have an impact on future inflation after a record $US 6.5 billion was distributed from federal accounts to the three tiers of government for June.
The surprise decision to nationalize three banks this month, prompted state asset management company AMCON to inject US$ 4.4 billion into the three banks on Monday, adding to liquidity flows.
Source: Reuters
