Selling price inflation in the private sector in Nigeria slowed to a seven-month low in February, according to the latest Stanbic IBTC Bank Nigeria Purchasing Managers’ Index, compiled by S&P Global.

The report, which assesses business conditions in the private sector, indicated that while inflationary pressures remained elevated, the rate of price increases moderated, providing some respite for businesses and consumers.

The decline in selling price inflation coincided with an acceleration in business activity, which expanded at its fastest pace in over a year.

New orders and purchasing activity saw significant increases, supported by a relatively stable exchange rate and lower fuel prices, which contributed to easing cost pressures.

The report stated that firms were able to adjust their pricing strategies as inflationary pressures subsided.

“In line with the picture for input costs, the pace of output price inflation remained sharp in February, but eased to a seven-month low. While employment rose only marginally, companies ramped up their input buying during the month, with the pace of growth the steepest since May 2023.

“Stocks of purchases also increased at a faster pace. Despite rising demand for inputs, suppliers’ delivery times shortened to the greatest extent in seven months as prompt payments led to the speedy delivery of goods,” the report said.

The headline PMI, a key measure of private sector performance, rose to 53.7 in February from 52.0 in January, indicating the strongest improvement in business conditions since January 2024.

A PMI reading above 50.0 signifies expansion, while a reading below 50.0 indicates contraction.

According to the report, business activity increased for the third consecutive month, with growth at its fastest pace in over a year. Respondents attributed the improved performance to strengthening demand, as new orders rose at the sharpest pace in more than 12 months.

Growth was recorded across agriculture, manufacturing, services, and wholesale and retail sectors. However, activity in the wholesale and retail segment increased only fractionally, reflecting a slower pace of recovery compared to other sectors.



https://punchng.com/selling-price-inflation-falls-to-seven-month-low-report/