Inflation: CPPE urges stronger policy focus on CPI computation

The Centre for the Promotion of Private Enterprise (CPPE) has underscored the need for stronger policy focus on enhancing the technical capacity and analytical rigour of Consumer Price Index (CPI) computations.

The CPPE said this is with a view to restore confidence in official statistical outcomes.

Dr Muda Yusuf, Chief Executive Officer, CPPE, said this on Monday in Lagos in reaction to the December inflation rate of 15.15 per cent by the National Bureau of Statistics (NBS).

Yusuf said the recent inflation figure, extending the disinflation trend recorded over the past 12 months was driven largely by falling food prices, which had provided some relief to households.

He noted however that recent changes in the methodology for computing the CPI had raised concerns about the credibility of the inflation data.

According to him, while inflation is moderating with suggestions that macroeconomic stabilisation efforts are beginning to take effect, data credibility is weakening.

“However, adjustments to CPI computation parameters have created credibility gaps, undermining the confidence of investors, analysts, businesses, and policymakers.

“The policy focus is to strengthen the technical capacity and analytical rigour to rebuild trust in statistical outcomes.”

He noted that recent changes in the methodology for computing the Consumer Price Index (CPI) had raised concerns about the credibility of the inflation data.

Yusuf added that while inflation was easing, the structural drivers of high costs, especially energy, transportation, logistics, and insecurity remained firmly in place.

He also noted that food inflation, the primary driver of relief, fell sharply to 10.84 per cent, providing the single biggest contributor to easing the cost-of-living pressures on Nigerian households.

He called for sustained agricultural supply and reduced logistics costs to maintain the momentum.

Yusuf also described the rising code inflation which increased to 18.63 per cent as a key concern in spite of exchange-rate stability.

“This is inconsistent with macroeconomic fundamentals and suggests deeper structural pressures or possible statistical inconsistencies.

“We call for a review and improved CPI methodology to ensure alignment with economic realities,” he said.

Yusuf also called for targeted cost reductions in food, housing, utilities, fuel and transportation to accelerate disinflation and improve affordability.

He said tackling legacy constraints of high energy costs, high interest rates and other factors was essential for making the disinflation trend sustainable.

He urged the NBS to strengthen institutional capacity for data accuracy and quality assurance to rebuild public and investor confidence in statistical outcomes. (NAN)