The National Bureau of Statistics has released its August Inflation report confirming inflation rate topped 9.3% year on year for the month of August 2015.

According to the report, the Consumer Price Index (CPI) which measures inflation edged higher to 9.3% (year-on-year), from 9.2% in July. The marginal increase was as a result of slower increases in Alcoholic Beverages, Tobacco and Kola; Health, Transport; and Recreation and Culture Divisions.

On a month-on-month basis, the pace of increases of food prices as reflected by the Food Sub-index has slowed, contributing to the relatively slower pace of increases reflected on the year-on-year rates between July and August.

The Food Sub-index rose by 10.1% (year-on-year) in August, slightly higher from 10.0% in July. While increases were observed in major groups within the index: Bread and Cereals, Meats and Fish, the index was weighted upon by a slower increase in the Fruit, Vegetables, and Potatoes, Yams and Other Tubers groups.

This report basically confirms our analyst prediction that inflation rate will rise 9.3% this month and is expected to taper down as the year runs down.
more on...[urlhttp://nairametrics.com/stagflation-is-here-inflation-rate-rises-to-9-3/][/url]

Ok

they scammed their own supporters

Nigeria economy is bleeding under the Buhari administration. I pray it never get worse though I don't see any hope in sight under this administration.

And Buha-idiot is busy touring around the world...

HMMM

yanabasee:
And Buha-idiot is busy touring around the world...

Buhari has been around the world ayaya, why is he going away, we don't know where, we don't know why, why is he going away, we don't know where he can be, but is our DD. (Music tune)

Guess what song I covered.

High inflation is a characteristic of dispensations such as the one in power. What did they expect when they reduced the amount of imported goods which covers about 50-60% of consumer expenditure. The CBN, in attempting to deal with the falling power of the naira by reducing the level of imported goods into the country, only ended up feeding the monster of demand-pull inflation. The policy was implemented, without due recourse to adequate local substitution of the marked goods. This is just the beginning, by the time the government, in trying to appease the public, or curry favour from the public, attempt to either implement an obscure version of the welfarist policy promised by the APC during the elections. Or attempt to raise salaries, we will see an increase in cost-push inflation, which will cause the inflationary gap to widen beyond expectations. We are in for it, under this OLODO government.

Just waiting for apc goons to blame GEJ for this one as well.

Am not sure buhari knows how to remedy this situation

hinwazaka:
High inflation is a characteristic of dispensations such as the one in power. What did they expect when they reduced the amount of imported goods which covers about 50-60% of consumer expenditure. The CBN, in attempting to deal with the falling power of the naira by reducing the level of imported goods into the country, only ended up feeding the monster of demand-pull inflation. The policy was implemented, without due recourse to adequate local substitution of the marked goods. This is just the beginning, by the time the government, in trying to appease the public, or curry favour from the public, attempt to either implement an obscure version of the welfarist policy promised by the APC during the elections. Or attempt to raise salaries, we will see an increase in cost-push inflation, which will cause the inflationary gap to widen beyond expectations. We are in for it, under this OLODO government.

Your explanation is a typical textbook analysis when other things are equal. But in this case other assumptions are changing. Firstly, inflation has only gone up marginally and will not skyrocket. On aggregate, Nigeria gains when we have slightly higher inflation than depleted foreign reserves. The cost of the latter will result in increased government demand for money, limited financing options, higher interest rate and even more inflation.

Sultannayef:


Your explanation is a typical textbook analysis when other things are equal. But in this case other assumptions are changing. Firstly, inflation has only gone up marginally and will not skyrocket. On aggregate, Nigeria gains when we have slightly higher inflation than depleted foreign reserves. The cost of the latter will result in increased government demand for money, limited financing options, higher interest rate and even more inflation.

* Aggregate demand is rising while the available supply of goods is becoming less
* Local production cannot match increasing demand, in the absence of adequate importable substitutes
* I made special reference to conjectures, proposed by the APC or its supporters, that may bring about cost-push inflation
* According to Keynes theory of demand pull inflation, the excess demand caused by the rise in government expenditure eliminates itself by changes in the real value of money( govt expenditure has reduced)
The CBN's attempt at saving the Naira's crash against the dollar has led to an increase in the quantity of money. which would lead to interest rates falling. A fall in the interest rate, would in turn increase investment which would raise aggregate demand.