By Modupe Gbadeyanka
Latest report by FSDH Research has warned that the imminent increase in the electricity tariff and the pump price of Premium Motor Spirit (PMS) otherwise known as petrol “will limit the rate of drop in the inflation rate in Nigeria in the short term.
In the report released last Friday and titled ‘MPC Meeting: Considerations and Policy Options’, the FSDH Research however said an expected increase in food production in the country on account of favourable policies will dampen food prices, which may lower the inflation rate.
The report comes as the Central Bank of Nigeria (CBN) holds its Monetary Policy Committee (MPC) meeting today, Monday, March 20, 2017, in Abuja.
“We expect the MPC to maintain a ‘wait and see’ approach and hold rates at their current levels,” the report said.
The inflation rate dropped for the first time in 15 months in February 2017 to 17.78 percent, from 18.72 percent in January 2017.
The drop in the inflation rate was because of base effect.
Dipo Olowookere 
Adedapo Adesanya