Dr. Ayo Teriba, CEO of Economic Associates (EA), anticipates that the recent appreciation of the Naira will have a delayed effect on inflation in Nigeria, projecting a timeframe of three to six months.
In an interview with NewsNow on Monday, Teriba reflected on the March inflation data, which revealed a rise to 33.20 percent.
Despite the Naira’s appreciation against the Dollar, the National Bureau of Statistics reported that prices of goods and services continued to rise in March.
Teriba emphasized that the inflation figures for March represent a lag in data analysis.
He suggested that it would take between three to twelve months for the positive impact of the currency exchange rate improvement to be reflected in the pricing of goods and services.
Pointing out the significant devaluation of the Naira year-to-date, Teriba indicated that the effects of the exchange rate adjustment would be gradual.
He stated, “The current inflation rate data is a reflection of March figures. The effects of recent exchange rate adjustments will start reflecting on pricing within three months, with full impact expected within six to twelve months.”
Stressing that monetary policy changes have a delayed impact, Teriba noted, “We need to observe a period of inflation acceleration before witnessing any decline in the rate.”
March saw Nigeria’s headline inflation rate surge to 33.20 percent, coinciding with the strengthening of the Naira against the Dollar, trading at N1,136.04 per Dollar on the FMDQ market.