PRIVATE SECTOR CHALLENGES NBS REPORT ON INFLATION DROP, CITING MARKET REALITIES
SUMMARY OF THE ARTICLE:
The Organised Private Sector (OPS) has criticized the recent Consumer Price Index report by Nigeria’s National Bureau of Statistics (NBS), which indicated that inflation rates dropped from 33.40% in July 2024 to 32.15% in August 2024. The OPS claims this reported decline contradicts the harsh economic conditions across the country, driven primarily by soaring fuel costs and rising prices of commodities.
Key Points:
1. Inflation Drop Reported by NBS:
According to the NBS, inflation rates have declined for two consecutive months, with the headline inflation rate dropping to 32.15% in August 2024.
2. Private Sector’s Response:
The President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Dele Oye, questioned the credibility of the report, highlighting that businesses and consumers face rising costs across various sectors, particularly due to the sharp increase in fuel prices.
3. Economic Reality vs. Inflation Data:
Despite NBS data, the OPS argues that inflation should be higher given the escalating prices of transportation, food, and manufactured goods. The price of petrol, which surpassed N1,000 per liter in the northern regions, is one of the major contributors to rising costs.
4. Call for Accurate Reporting:
OPS urged the NBS to revisit its data gathering methods and called on the government to address the structural issues driving inflation, particularly in the supply chain and energy sectors.
5. Small Business Sector's View:
The Association of Small Business Owners of Nigeria echoed similar concerns, stating that the inflation rate decline contradicts the actual cost of goods and services, further intensifying economic challenges for businesses.
In summary, the private sector disputes the reported decline in inflation, emphasizing that it does not align with the current economic situation in Nigeria.
SUMMARY OF THE ARTICLE:
The Organised Private Sector (OPS) has criticized the recent Consumer Price Index report by Nigeria’s National Bureau of Statistics (NBS), which indicated that inflation rates dropped from 33.40% in July 2024 to 32.15% in August 2024. The OPS claims this reported decline contradicts the harsh economic conditions across the country, driven primarily by soaring fuel costs and rising prices of commodities.
Key Points:
1. Inflation Drop Reported by NBS:
According to the NBS, inflation rates have declined for two consecutive months, with the headline inflation rate dropping to 32.15% in August 2024.
2. Private Sector’s Response:
The President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Dele Oye, questioned the credibility of the report, highlighting that businesses and consumers face rising costs across various sectors, particularly due to the sharp increase in fuel prices.
3. Economic Reality vs. Inflation Data:
Despite NBS data, the OPS argues that inflation should be higher given the escalating prices of transportation, food, and manufactured goods. The price of petrol, which surpassed N1,000 per liter in the northern regions, is one of the major contributors to rising costs.
4. Call for Accurate Reporting:
OPS urged the NBS to revisit its data gathering methods and called on the government to address the structural issues driving inflation, particularly in the supply chain and energy sectors.
5. Small Business Sector's View:
The Association of Small Business Owners of Nigeria echoed similar concerns, stating that the inflation rate decline contradicts the actual cost of goods and services, further intensifying economic challenges for businesses.
In summary, the private sector disputes the reported decline in inflation, emphasizing that it does not align with the current economic situation in Nigeria.