A
statistician, Dr Olusanya Olubusoye, has advised politicians and government at
all levels against reckless fiscal spending to prevent inflation ahead of the
2019 elections.
Olubusoye, a lecturer at the Department of Statistics,
University of Ibadan, gave the advice in an interview with the News Agency of
Nigeria (NAN) in Abuja on Monday, while reacting to March inflation figures.
University of Ibadan, gave the advice in an interview with the News Agency of
Nigeria (NAN) in Abuja on Monday, while reacting to March inflation figures.
Nigeria’s inflation rate measured by the Consumer
Price Index (CPI) dropped from 14.33 in February to 13.34 per cent in March
year-on-year, according to the National Bureau of Statistics (NBS).
Price Index (CPI) dropped from 14.33 in February to 13.34 per cent in March
year-on-year, according to the National Bureau of Statistics (NBS).
The don said reckless fiscal spending was one of
many causes of inflation.
many causes of inflation.
He explained that politicians of the leading
parties usually raised and spent huge funds for their campaigns during
elections.
parties usually raised and spent huge funds for their campaigns during
elections.
Olubusoye said the campaign funds increase the
money in circulation and fuels inflation.
money in circulation and fuels inflation.
“Election year is usually a spending year and the
tendency is there to have inflation triggered by the careless spending on the
part of the government.
tendency is there to have inflation triggered by the careless spending on the
part of the government.
“This is because of re-election bid and efforts
of the opposition to outwit the party in power,” he said.
of the opposition to outwit the party in power,” he said.
Speaking on the inflation figures, Olubusoye said
the price level actually rose marginally by 0.8 per cent in March when compared
to the price level in February.
the price level actually rose marginally by 0.8 per cent in March when compared
to the price level in February.
He, however, said the price level in March 2018
compared to what was observed in March 2017, the figure increased by 13.34 per
cent.
compared to what was observed in March 2017, the figure increased by 13.34 per
cent.
“This figure of 13.34 per cent is what is called
inflation rate.
inflation rate.
“The simple meaning is that the price level of
goods and services in Nigeria increased by 13.34 per cent between March 2017
and March this year,’’ observed Olubusoye.
goods and services in Nigeria increased by 13.34 per cent between March 2017
and March this year,’’ observed Olubusoye.
He explained that the March CPI figures showed 14
consecutive reductions in inflation rate since January 2017.
consecutive reductions in inflation rate since January 2017.
The don said that the rates had been dropping
since January 2017 repeatedly for 14 periods.
since January 2017 repeatedly for 14 periods.
“In particular, it dropped from 14.33 per cent in
February 2018 to 13.34 per cent in March 2018 which is about 0.99 percentage
points; this analysis simply reveals two important points.
February 2018 to 13.34 per cent in March 2018 which is about 0.99 percentage
points; this analysis simply reveals two important points.
“The prices of goods and services have been
increasing for 14 months consecutively.
increasing for 14 months consecutively.
“The rate of increase in the price level of one
month compared to the corresponding month in the preceding year for each of the
14 consecutive months is, however, declining.
month compared to the corresponding month in the preceding year for each of the
14 consecutive months is, however, declining.
“In fact, the rates of decline are so small to
the extent that they are not,” he said.
the extent that they are not,” he said.
Olubusoye said it was obvious that the figures
were telling the truth about the price situation in the country.
were telling the truth about the price situation in the country.
