There is a scientific approach to curb artificial inflation, particularly in the food sector. That is what the National Bureau of Statistics (NBS), in collaboration with the Nigerian Economic Summit Group (NESG), have decided to apply in their monthly report beginning from the end of January. They announced that three new indices to track price volatility would be introduced in the monthly Consumer Price Index (CPI).
While announcing the planned approach at the sensitisation workshop on Gross Domestic Product (GDP) and CPI rebasing organized in Lagos State, the bureau have assurance that the three indices would be released in January 2025.
Dr Ayo Andrew, Head of Price Statistics at the NBS, , said the indices would track education and transport price movements, farm produce activity, and energy.
He said, “Apart from our normal headline inflation, core inflation, food inflation; the basics, we are going to include in the new CPI rebased that will be released this January another index that has never been released before.
“Number one is the services index. At what rate are the prices of services in Nigeria increasing? People want to know about (those figures) in education and transport.
“NBS will bring that on board by the end of this month. Also energy index, at what rate is price fluctuating in this sector?
“Farm produce index, what is the rate of price volatility of these products, and at what rate are prices of items in this sector moving? So these are the special indices that we are going to release at the end of this month.”
We recall an earlier report indicating that there are plans to rebase Nigeria’s GDP rate, which is scheduled to take effect from the end of January 2025.
Rebasing the GDP is an internationally recognised measure of economic size and strength that provides the government with more clarity on GDP growth, up-to-date data, an understanding of the economy’s true potential, and the foundation for sustainable growth.
The economic process allows Nigeria to align with transformative moves by providing a more precise and relevant picture of the country’s economic landscape.
The process is also a foundation for informed policymaking, strategic planning, and effective governance; hence, one exercise that the NBS is conducting with significant importance and professionalism.