The removal of fuel subsidy and the consolidation of the country’s forex market was not taken into account in the inflation data for the month of June, according to the Nigerian Bureau of Statistics.
The statistical bureau’s clarification comes as experts continue to question the reason behind the recently released data. After the Bola Tinubu-led government removed fuel subsidy and unified the forex market in June, many Nigerians expected a significant increase in the country’s inflation data.
Despite the significant economic decisions that have impacted the country’s economy, the latest inflation data only shows a 0.38% increase.
Making clarification as to why the country’s inflation only rose by 0.38 percent in June, NBS in a tweet on Monday night said: “The June Consumer Price Index (CPI) numbers may not fully capture the impact of the fuel subsidy removal and the unification of the exchange rate. This is because the data collection for computing the rate for the reference month typically stops around the middle of the month, meaning that the June numbers only reflect approximately two weeks of the policy impact on consumer prices.
“The full effect of the policy as relates to prices can, therefore, not be reflected in June only, but also in subsequent months, based on actual prices collected in market outlets across the country,” it added.
The President Tinubu-led administration announced the end of fuel subsidy on May 29 during his inauguration. The government of Mr. Tinubu then unified the foreign exchange market in an effort to strengthen the local currency relative to the US dollar.
Nevertheless, the value of the national currency has continued to decline, reaching as high as N800 to a dollar last week.
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