CBN reports N1.79trn in circulation….inflation rate hit 17.9% in September

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The Central Bank of Nigeria (CBN) has said N1.79 trillion currency was in circulation for month ended September 30, 2016.

The amount of Naira in circulation according to CBN in September appreciated by 6.8 per cent, above N1.68 trillion recorded in August 2016.

According to data collected by our correspondent, the currency in circulation early this year was N1.73 trillion but dropped by 0.78 per cent to N1.7 trillion in February.

Currency in circulation according to CBN data stood at N1.86 trillion in March, the highest so far this year. In April, the figure fell by 2.6 per cent to N1.76 trillion and closed May and June at N1.75 trillion and N1.68 trillion respectively.

Further investigation by Nigerian NewsDirect revealed that currency in circulation remained flat at N1.66 trillion and N1.68 trillion in July and August respectively.

The apex banking regulatory body has continued to mop-up liquidity in the system, a move to curb rise in inflation and fund government revenue shortfalls.

The inflation rate trended higher in September to 17.9per cent, from 17.61per cent in August 2016.

The National Bureau of Statistics (NBS) during the weekend said, the Consumer Price Index, which measures inflation across the country, increased by 17.9 per cent year-on-year, up from the 17.6 per cent recorded the previous month.

According to the NBS, energy and energy-related prices continue to be the largest increases reflected in the core sub-index.

It stated that in September, the core sub-index increased by 17.7 per cent, up by 0.5 per cent points from rates recorded in August (17.2 per cent).

The bureau said, “During the month, the highest increases were seen in the electricity, liquid fuel (kerosene), solid fuels, and fuels and lubricants for personal transport equipment groups. Communication and restaurants and hotels recorded the lowest rates of increase of the 12 divisions, growing by 5.6 per cent and 9.6 per cent, respectively.”

The bureau noted that the food sub index increased by 16.6 per cent year-on-year in September, up by 0.19 per cent points from rate recorded in August (16.4 per cent).

The NBS said price movements recorded by the all items less farm produce or core sub-index increased by 17.7 per cent year-on-year in September, up by 0.5 per cent points from rates recorded in August (17.2 per cent).

During the month, the highest increases were seen in clothing materials, other articles of clothing and clothing accessories, garments, shoes and other footwear, books and stationeries, jewellery, clocks and watches, and motorcycles,” it added.

The corresponding 12-month year-on-year average percentage change for the urban index increased from 13.6 per cent in August to 14.4 per cent in September, while the corresponding rural index also increased from 12 per cent in August to 12.6 per cent in September,” the NBS added.

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