Inflation: Uwaleke Urges CBN’s MPC to Halt Further Rate Hike

* Says rebasing primarily meant to reflect current inflationary pressure 

Ndubuisi Francie in Abuja 

A financial expert and President of the Capital Market Academics of Nigeria (CMAN), Prof. Uche Uwaleke, has urged the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) to pause interest rate hikes to create room for output growth following the rebasing of the Consumer Price Index (CPI) which measures inflation by the National Bureau of Statistics (NBS). 

The NBS has just released the rebased CPI, reflecting an updated price reference period (base year) of 2024 and weight reference period of 2023. 

According to the rebased figures, Nigeria’s inflation rate for January 2024 stood at 24.48 per cent year-on-year (Y-o-y), with Food Inflation rate standing at 26.08 per cent, Core Inflation rate at 22.59 per cent, Urban Inflation rate at 26.09 per cent, and Rural Inflation rate  at 22.15 per cent.

Reacting to the rebasing, Uwaleke, a former Commissioner for Finance in Imo State and Director, Institute of Capital Market Studies, Nasarawa State University, told THISDAY that the exercise was primarily meant to reflect current inflationary pressure which explained why the NBS moved the reference price period to 2024. 

Against this backdrop, he said the development was welcome.

“The benefits of the rebased number are several. First, it will help the government especially the monetary authority to make more informed decisions. 

“It makes our inflation number comparable with the rest of the world since it is based on standard and updated methodology. 

“This can place both foreign and domestic investors in a stronger position to make investment decisions in favour of Nigeria 

“Now that the inflation number for January has provided evidence of weakening inflationary pressure, I expect the Monetary Policy Committee of the CBN to pause rate hikes to create room for output growth,” he said.