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Naira appreciation will impact inflation within six months — Teriba

The chief executive of Economic Associates, EA, Dr Ayo Teriba, has said the recent Naira appreciation will impact the country’s inflation between three and six…

The chief executive of Economic Associates, EA, Dr Ayo Teriba, has said the recent Naira appreciation will impact the country’s inflation between three and six months.

Teriba disclosed this on Monday in an interview with Daily Post while reacting to the March inflation figure, which rose to 33.20 per cent.

According to the National Bureau of Statistics, the March inflation figure showed that the prices of goods and services continued to soar despite the appreciation of Naira to the Dollar.

However, Teriba said the inflation figure in March represents a lag of months.

He noted that it will take three to 12 months for the country to start seeing the impact of the improvement in exchange on the prices of goods and services.

“The devaluation of the exchange rate: If you look at where the Naira was one day and what it is today, you will see a massive devaluation year-to-date.

“That improvement in exchange will see through, but with a lag, the inflation you are reading now is in March.

“The tightening should be reflected in the prices of goods in less than three months. In six or twelve months, you will see the impact.

“It is not overnight, as you see the appreciation of the Naira. Monetary policy is subjected to three to 12 months before you see an appreciation impact on the exchange rate.

“We will have to see the acceleration of inflation first before deceleration.”