Despite a second consecutive monthly decline, Nigeria’s inflation rate remains alarmingly high, with prices of essential goods continuing to surge.
The National Bureau of Statistics reported a 32.14% inflation rate in August, down from 33.4% in July. However, this decrease barely reflects the harsh reality faced by Nigerians.
Food inflation reached 40.87% in June, significantly higher than the 25.25% recorded in June 2023. Staple foods like rice, tomatoes, and frozen chicken have seen drastic price increases.
Experts attribute the drop in inflation to seasonal declines in food prices but emphasize the need for comprehensive fiscal policy reforms.
Key statistics highlighting Nigeria’s economic challenges include:
– 40.7% of Nigerians expected to live below the poverty line by year-end
– Naira trading at N1,540 per dollar, compared to N460 in May 2023
– Interest rates hiked to 26.75% from 11% in two years
To combat inflation, experts recommend:
– Tariff cuts or suspension of critical imports
– Improving local refining to reduce petrol prices and pressure on the naira
– Enhancing the business environment to drive productivity and wealth creation
Nigeria’s inflation rate remains significantly higher than neighboring countries, including South Africa (4.4%), Kenya (4.4%), Uganda (3.9%), Benin (3.0%), and Togo (4.2%).
Punch.
