BREAKING: Amidst Scarce Foreign Exchange, Nigeria Records Highest Inflation Rate in Years

BREAKING: Amidst Scarce Foreign Exchange, Nigeria Records Highest Inflation Rate in Years

In July 2023, Nigeria witnessed a significant surge in its inflation rate, reaching 24.08%, which is the highest it has been in years…CONTINUE READING

This rise of 1.29% points compared to the previous month’s rate of 22.79%, as reported by the National Bureau of Statistics (NBS) in its Consumer Price Index (CPI) report released on Tuesday.

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The CPI is a metric used to gauge the pace of price fluctuations for goods and services.

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On July 25, 2023, the Central Bank of Nigeria (CBN) increased the Monetary Policy Rate (MPR), a measure of interest rates, from 18.5 percent to 18.75%.

This adjustment in interest rates comes amidst escalating food costs and an escalating transportation burden, caused in part by the removal of subsidies on Premium Motor Spirit (PMS), commonly known as petrol. The price per liter surged from N184 to approximately N600, reflecting a hike of over 200%.

The central bank stated that the decision to raise the interest rate has significantly aided in tempering the inflation rate.

In an effort to address the shortage of foreign exchange, where the dollar is exchanged at over N900 for a naira, Acting CBN Governor, Folashodun Shonubi, announced on Monday that the apex bank would implement specific measures in the upcoming days to enhance market liquidity.