Posted by By ISAAC ANUMIHE, Abuja on
As inflation reached an all-time high of 8.2 per cent in the month of April, Central Bank of Nigeria (CBN) at the weekend decried the trend.
As inflation reached an all-time high of 8.2 per cent in the month of April, Central Bank of Nigeria (CBN) at the weekend decried the trend.
In its April 2008 monthly report, it showed that the 8.2 per cent inflation rate was high compared to 7.8 per cent in the preceding month.
The report noted that inflation on a year- on -year basis showed an increase of 0.3 per cent from 5.8 per cent in March 2007 to 6.1 per cent in April 2008.
The apex bank, however, attributed it to the rising cost of food items, household goods, kerosene and building materials.
Even in the face of inflation, it said, in the month under review, the external reserves stood at US$60.82billion being an increase of 1.8 per cent and 39.7 per cent with the levels of US$59.76billion and US$43.5billion recorded in the preceding month and the corresponding period of 2007.
The report also disclosed that in the banking sector, credits to the domestic economy rose by 23.9 per cent to N3, 601.86 billion in April 2008 compared with an increase of 3.0 per cent in the preceding month saying that the increase was due to seven per cent increase in claims to the private sector.
Similarly, the report said, banking system credits to the Federal Government rose by 5.2 per cent compared to 3.2 per cent in the preceding month, even as it attributed the increase to 35.2 per cent claims by the Deposit Money Banks.
The report also stated that the credit gathered within the period under review stood at N6, 495.8 billion, being a five per cent increase compared with the 7.3 per cent in the preceding month.