CBN’s MPC Blames Rising Inflation on Fuel, Hikes In Electricity Tariff

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has blamed the hike in energy prices for the rising inflation rate experienced within the country in February 2022.

In a communique released after the MPC, the central bank body expressed concerns towards the rising inflation which has increased cost of living for Nigerians.

In the report, inflation was up from 15.60% in January 2022, to 15.70% in February 2022, posting a year-on-year growth, while keeping Nigeria in the double-digit inflation group.

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Commenting on the inflationary environment in Nigeria, the MPC stated that the scarcity of Premium Motor Spirit (PMS) and rise in the cost of Automotive Gas Oil (AGO) are factors fuelling inflation rise.

Also, hike in electricity tariff is another reason as stated by MPC. In a bid to tame the uptrend of inflation rate, the CBN will intervene financially in various sectors of the economy.

MPC further says, it will “enable the unhindered transmission of all the recently deployed fiscal and monetary stimulus to the real economy.”

The intervention would improve production output, which in turn will moderate rises in prices. While the MPC stated that CBN would play its part, the group requested for “innovative ways of addressing the current critical supply-side challenges confronting the economy” from the fiscal authorities.