Although headline inflation was trending downward at the time of the last MPC meeting, core inflation remained elevated, driven by energy costs and other structural factors. “In addition, the MPC applauded the ongoing effort of the Federal Government to bridge the food supply deficit through the duty-free import window for food commodities. The Committee also expressed optimism that lifting refined petroleum products from Dangote refinery will moderate transportation costs and significantly support the easing of food price pressures in the short to medium term. “Notwithstanding, the committee’s steadfast focus on curbing inflation and achieving positive real interest rate to attract foreign investment suggests that a further rate hike is imminent. “We expect the MPC to focus on price stability and exchange management, given the persistent upward trend in headline inflation.

Source: Punch November 25, 2024 02:54 UTC