The National Bureau of Statistics (NBS) told Reuters on Monday that Nigeria plans to re measure its inflation index from 2004 to 2009 by the end of this year to give evidence of the impact of non-food items on prices accurately. After the country’s re-basing, GDP was re evaluated and announced on Sunday for the first time in 24 years, Mr. Yemi Kale, Statistician of the Federation said at the Reuters Africa Investment Summit that it is time to re measure the inflation index and take into account the growing middle class with rising incomes.
The GDP recapturing showed significant changes in the Nigerian economy which included the rise of mobile phones and the internet. This inflation reweighing will be less dramatic and might help reduce inflation estimates.
In the past year, Nigeria has seen single-digit inflation for the first time in five years owning, to some extent, to tamer food prices and tight monetary policy. Kale confirmed that food, a volatile matter, currently accounts for 60% of the Nation’s inflation basket when compared with non-food data which is more stable.
Kale explained, “We are updating our records to reflect the true macroeconomic picture of Nigeria. We are witnessing an increase in non-food consumption expenditure but the magnitude is what will determine the impact (on inflation),”
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