NIGERIA INFLATION TEND TO DROP TO 21.5% IN 2024.
In the world of economy here in Nigeria, as of 2023 there was a record of over 24.5% Nigeria inflation rate but over this year, Nigeria is projected toward dropping at 21.5% if the government play their cards right.
This was made clarified accordingly to the report launched in January 24 this year. The report also states that food which is the necessity of man living would still remain the contributed factor of the overall Nigeria inflation.
In the report some key two statement where been brought to the attention of the citizens of the Federal Republic of Nigeria and has been the most important concern for the residence of Nigeria.
It was recommended that setting a cap on petrol pump prices has the potential to mitigate the extent of the pass-through impact resulting from the removal of fuel subsidies on both food and non-food item prices.
“The removal of fuel subsidies will continue to increase core inflation, primarily through high transport and energy costs.
Also, some concrete projections where been made by the NESG about the various possibility of the said Inflation that has become worrisome for the citizens of Nigeria in 2024. The report also said in the occasion stagnation the inflation rate could hit to 25.1%
according to the University of Oxford Dictionary, the word Stagnation refers to “a state of not moving or flowing” and going by this definition it implies that the current rate at which the inflation is would remain there until drastic measures are being taken by the government.
Whereas in the case of Obsolesces which is define according to the University of oxford dictionary as “the process of been old fashion, outdated and no longer in use.” which implies a state of the economical infrastructural policies and programs becoming disabled and unable to welcome the new strategic developmental segment. And so, it was said that the Nigeria inflation may hit 28.5% as a result of the system not redeveloping.
THINGS EVERY NIGERIA CITIZEN SHOULD KNOW
According to the NESG’s 2024 Macroeconomic Outlook, inflationary pressure primarily stemmed from limitations in productivity rather than monetary factors, which has posed challenges for the CBN’s monetary interventions to control inflation.
As the CBN’s Monetary Policy Committee is set to meet on February 26 and 27, it is anticipated that the CBN will stick to its hawkish stance on the monetary rates.
Speaking at the NESG 2024 Macroeconomic Outlook, Yemi Cardoso, the CBN Governor hinted at this stance, noting, “In this challenging landscape, the policy priorities involve ensuring durable inflation reduction, addressing fiscal pressures, and fostering sustainable and inclusive growth. The global management policy environment is expected to remain restrictive until sustained inflation reduction becomes evident.”
Because as of 2023, Nigeria recorded an inflation of 24.5%, which was 5.7 percentage points higher than the 18.8% posted in 2022. Despite the CBN’s hawkish stance on the monetary policy rate, with the MPR fixed at 18.75%, and the Cash Reserve Ratio being 32.5%, inflationary pressures did not cool off.
Source: Nairametrics Buiness News
