The National Bureau of Statistics (NBS) said on Tuesday that Nigeria’s annual inflation rate increased to 24.08 per cent in July from 22.79 per cent the month before.
According to the NBS, the headline inflation rate was 4.44 percentage points higher on an annual basis than the rate, which was 19.64 percentage points in July 2022.
This demonstrates that when compared to the same month the year before (i.e., July 2022), the headline inflation rate increased in July 2023, according to the report.
The research states that the rate of food inflation climbed from 25.25 per cent in June to 26.98 per cent in July.
Despite the fact that food costs have been rising across Nigeria in recent years, the situation has gotten worse as a result of government measures, including the elimination of the gas subsidy, among others.
The removal of the petrol subsidy was announced by President Tinubu on May 29 during his inauguration. With the ensuing rise in the cost of goods and services, this situation has put many Nigerians through hardship.
As part of its efforts to promote market transparency and raise investor trust, the Central Bank of Nigeria (CBN) recently announced the unification of all segments of the foreign exchange (FX) market in addition to the removal of subsidies.
Although the programme has received much praise for being well-intentioned and essential, it has increased pressure on the local currency and manufacturers, which has had an impact on costs.
The abolition of the petrol subsidy was announced by President Tinubu on May 29 during his inauguration. With the ensuing rise in the cost of goods and services, this situation has put many Nigerians through hardship.
As part of its efforts to promote market transparency and raise investor trust, the Central Bank of Nigeria (CBN) recently announced the unification of all segments of the foreign exchange (FX) market in addition to the removal of subsidies.
Although the programme has received much praise for being well-intentioned and essential, it has increased pressure on the local currency and manufacturers, which has had an impact on costs.
The biggest economy in Africa has continued to experience excessive inflation, which has prompted the central bank to raise interest rates to their highest levels in almost two decades.
The benchmark lending rate of the Central Bank of Nigeria (CBN) increased to 18.75% in July.
The bank said, “Hiking the interest rate has made a lot of difference in moderating the rate of inflation”.
On the basis of the anticipated infusions of cash into the economy from recent attempts to integrate the country’s foreign exchange markets, it was highlighted that the option to continue the policy rate hike, albeit marginally, also presented a solid alternative.
State of Emergency
To combat the rise in food costs, Tinubu had proclaimed an emergency State of Emergency on food insecurity in July.
He also directed that “all matters pertaining to food & water availability and affordability, as essential livelihood items, be included within the purview of the National Security Council.”
