The Central Bank of Nigeria (CBN) has projected that current inflationary pressures may continue in the near term based on the prevailing micro and macroeconomic indices of the economy
The apex bank, which made this prediction in its just published second quarter ‘Economic Outlook’ report, pointed out that the removal of fuel subsidy, depreciation of the Naira, anticipated upward review of wages and electricity tariffs, and negative effects of climate change on agricultural activities were likely to sustain the increased inflation in the near term.
It clarified: “Inflationary pressures may subsist in the near-term on account of the removal of fuel subsidies and subsequent higher prices of premium motor spirit, and the depreciation of the Naira.
“Moreover, the anticipated upward review of wages and electricity tariffs, alongside the adverse effects of climate change on agricultural output, are likely to induce further inflationary pressures”
However, the apex bank expressed optimism that tight monetary policies and improvement in global supply chains would help dampen the inflation rate in the future.
It would be recalled that on Wednesday, the National Bureau of Statistics (NBS), reported that Nigeria’s inflation rate rose to 27.33% for the month of October, representing 0.61% increase over the rate recorded in the preceding month and the highest rate in 18 years in the economy.
Largely, the Bureau attributed the latest surge in the Consumer Price Index (CPI) to surging food prices which peaked at 31.52% in October, from the 30.64% recorded in September this year.