IMF Faults NBS Inflation Figures, Calls it Severely Outdated, Makes Promises to Nigeria
- The International Monetary Fund (IMF) has faulted the weights used by NBS to measure inflation in Nigeria
- IMF stated that the Consumer Price Index used to measure inflation figures in Nigeria is outdated
- It asked the NBS to use the 2018 National Household Living Survey and not the 2003/2004 survey
PAY ATTENTION: Click “See First” under the “Following” tab to see Legit.ng News on your Facebook News Feed!
The International Monetary Fund (IMF) says the measures used by the National Bureau of Statistics (NBS) to calculate the monthly consumer price index (CPI) need to be updated.
The Consumer Price Index (CPI) measures inflation by tracking the changes over time in the prices buyers pay for a basket of goods and services.
Source: Getty Images
IMF says Inflation figures massively flawed
The basket’s composition and weighting are based on surveys of households or family expenditure habits.
PAY ATTENTION: Subscribe to Digital Talk newsletter to receive must-know business stories and succeed BIG!
NBS says Nigeria’s inflation rate surged to 21.82 per cent, an increase from 21.34 from the preview month.
In a recently released 2022 Article IV consultation report on Nigeria, the Washington-based bank stated that the NBS inflation figures do not accurately reflect expenditure patterns.
IMF warned that outdated weights could lead to bias in the inflation index
IMF said:
“The weights are severely outdated and are not representative of current expenditure patterns. Outdated weights can introduce a bias into the index.”
TheCable reports that the IMF asked NBS to use new measures from the 2018 National Household Living Standards survey instead of the 2003/04 National Consumer Survey.
IMF moves to help Nigeria to update its CPI
According to the global body, the collection of an updated price index is ongoing, getting funding for it is still being determined.
The IMF assured that it would support the country in updating its CPI.
IMF said:
“The update of the CPI—using new weights from the 2018 National Household Livings Standards Survey—is still ongoing.”
“Compilation of an updated producer price index is ongoing, but funding for the survey is uncertain.
IMF speaks on governors challenging directives on old naira notes in Supreme Court, makes demands
Legit.ng reports that the International Monetary Fund (IMF) has called for a review of the Central Bank of Nigeria Act 2007 to enhance the bank's autonomy and governance.
IMF stated this in its latest report titled 'Nigeria: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Nigeria, released on its website.
According to the global institution, the CBN's autonomy has been disputed due to its naira redesign policy.
Source: Legit.ng
