Inflation rate will drop to single digit by 2018, says Emefiele

Godwin Emefiele, governor of the Central Bank of Nigeria (CBN), says inflation rates are projected to drop and record high single-digit rates mid-2018.

Emefiele made this known to Journalists on Friday while attending an investment conference at the London Stock Exchange.

While annual inflation in Nigeria eased down to 15.98 percent on rising food prices in September, Emefiele said that an inflation rate of 9 percent will be a moderate target for 2018.

“We are very optimistic that food prices will come down, and as they come down it will help to complement the reduction in core inflation.

“We are hoping that by the middle of next year we should begin to approach the high single digits,” he said.

The CBN monetary policy committee had in August restated its intention to keep interest rate at 14 percent with Emefiele saying that “downward trend in inflation is a welcome development,” even though “the rate was still significantly above the policy reference band”.