For the first time in 15 months (since October 2015), the rate of inflation in Nigeria fell. In February 2017, the rate dropped to 17.78% from 18.72% in January 2017, according to the National Bureau of Statistics.
The Consumer Price Index (CPI) dropped, but prices of food items are still high (from 17.82% in January to 18.53% in February 2017).
The fall in CPI, however, signals good news for Nigerians.
Here are the benefits of falling inflation:
1. It creates confidence in the economy as it signals an era of stability where more investment can flow in.
2. Economic growth is more realistic as decisions on long term goals can be better situated with stable interest rates.
3. Products become more competitive with prices that are realistic.
4. Purchasing power is higher and standard of living rises.
5. Speculation is discouraged as more discernible indices are predictable.
6. With higher purchasing power, employment grows.
7. And hardships lessen.