Olusegun Omisakin, the Head of Research, Nigerian Economic Summit Group (NESG), says rising inflation rate in the country has gone beyond the control of Central Bank of Nigeria (CBN).

Omisakin made the observation in an interview with the News Agency of Nigeria (NAN) on Monday in Lagos.

NAN reports that data released by the National Bureau of Statistics (NBS) on Jan.13 showed that December 2016 inflation rate stood at 18.55 per cent from 18.48 per cent in November.

Inflation targeting is a major economic policy objective of CBN and this has been the focus of its Monetary Policy Committee (MPC).

The apex bank, on July 26, 2016, increased the Monetary Policy Rate (MPR) by 200 basis points from 12 per cent to 14 per cent to check inflation.

The CBN retained all key indicators at its September and November MPC meetings to keep MPR at 14 per cent, Cash Reserve Ratio at 22.50 per cent and the Liquidity Ratio at 30 per cent, all aimed at controlling inflation.

Omisakin said that the rising inflation had defied CBN’s monetary policy measures, adding that policy tools adopted by the apex bank were only effective in taming inflation arising from demand-supply imbalances.

“In this case, inflation is cost-push. Production cost is high because producers who want to import intermediate goods for production do not have access to foreign exchange.

“Most of them go to the black market and definitely the product from this would be expensive, thereby increasing inflation.

“The CBN cannot do anything through the monetary policy rate to arrest this inflation even if CBN increases the MPR to 20 per cent. Inflation would not come down.

“The inflation we are experiencing now is out of the control of CBN. CBN can only address issues that have to do with availability and circulation of money and credit control.

“CBN cannot address cost-push inflation because it cannot provide energy, roads, transport. There are fiscal issues,” Omisakin said.

The economist urged the CBN to formulate policies that would boost industrial production and economic growth in view of the current economic recession.

Omisakin called for coordination of fiscal and monetary policies to check the rising inflationary trend in the country.

“The rising cost of food, transport and energy will reduce if the Federal Government creates concrete fiscal policies with effective implementation to address the situation through increased investment in infrastructure and agriculture,” he said.

The expert said that speedy passage and effective implementation of the 2017 budget would stimulate economic activities.

http://www.kikiotolu.com/2017/01/expert-says-inflation-is-out-of-cbns.html

I hope I didn't take anyone's space....
The way folks write 'First to comment' ehn.. ..
I thought FTC is better than orgasm but.. ........ Mtcheeew .

na die

Currency wahala ...

Our help will only come from Thee O 'Lord

Oh Lord! We're in hot soup

Wonderful!

Let d govtmen do d needful..,heads must roll..Emiefele first

THE INVINCIBLE HAND ADAMS SMITH TALKED ABOUT IS NEEDED HERE.


Let Fed govt just free the market.

EMEFIELE HW LONG DO U WANNA CONTINUE EXPERIMENTING. JUS HUMBLY COMOT NA

It is time we start mining other mineral resources asides oil that we have a comparative advantage, this is the only short term way to improve forex reserve and it will equally act as a catalyst for other economic activities.

in omawumi's voice
''if you ask me na who i go ask?
yeye country

#GodBlessNigeria

An illiterate (BUHARI) and two semi-literates (CBN GOV & Minister of FIN) have ruined my country....

you took mine

Ekakamba:
I hope I didn't take anyone's space....

if heads must roll it must start from buhari......he must pay for this.

All sensible and logical Nigerians know that the current economic recession and depression was mostly triggered by poorly thought out policies by the current administration...

The worst was the refusal of the man at the helm of affairs to devalue the naira for close to 12 months! That alone caused irreversible damage to the country.


Of course zombies always love to hear Jonathan being blamed but that's why they're named zombies, they have no way of thinking on their own but would rather go with the lies and propaganda being bandied around by this devilish APC govt...

Take Buhari out of the picture and give the leadership to a man filled with wisdom and see how inflation gets arrested in 3 weeks

it's allowed. forward you account number sharply to Seun

Ekakamba:
Pele it's not me. Probably your network.

Hmmm
Meanwhile you can always see updated prices of building materials at www.engineerosaz..com

When our government is busy creating false scarcity upandan

https://www.youtube.com/watch?v=adtHCvViOic

I am not an economics, but this theory looks sensible. Cost push inflation is hard to control

1naira must be equal to 1dollars. Am still wondering if that thing that old man is carrying on his neck is called head?? Or is his type of head different?

E don tay we know this one na

CBN should join MMM

So who takes the responsibility now?