Nigeria’s inflation rate surged to 31.70 percent in February 2024, marking a notable increase from the 29.90 percent recorded in January of the same year, according to the latest Consumer Price Index (CPI) and inflation report released by the National Bureau of Statistics on Friday.
This rise of 1.80 percent indicates a faster pace of increase in the average price level compared to the previous month.
On an annual basis, February 2024’s inflation rate was also substantially higher, standing at 9.79 percent above the rate recorded in February 2023, which was 21.91 percent.
Additionally, the month-on-month headline inflation rate in February 2024 reached 3.12 percent, indicating a 0.48 percent increase from January 2024’s rate of 2.64 percent.
This suggests that prices rose at a quicker rate in February compared to January.
Despite efforts by the Central Bank to tighten monetary policy, such as increasing the benchmark interest rate to a record 22.75 percent at the latest Monetary Policy Meeting, inflationary pressures persist.
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The decision to raise the policy rate was made to address the concern that inflation could become more persistent in the medium term, potentially leading to further regulatory challenges if left unchecked.
During the meeting, discussions focused on various factors contributing to inflation, including distortions in the foreign exchange market and the impact of speculators driving upward pressure on the exchange rate, resulting in a significant pass-through effect on inflation.
In light of these considerations, a substantial policy rate hike was deemed necessary to effectively combat inflation and stabilize the economy.
Nigeria’s inflation rate surged to 31.70 percent in February 2024, marking a notable increase from the 29.90 percent recorded in January of the same year, according to the latest Consumer Price Index (CPI) and inflation report released by the National Bureau of Statistics.
This rise of 1.80 percent indicates a faster pace of increase in the average price level compared to the previous month.
On an annual basis, February 2024’s inflation rate was also substantially higher, standing at 9.79 percent above the rate recorded in February 2023, which was 21.91 percent.
Additionally, the month-on-month headline inflation rate in February 2024 reached 3.12 percent, indicating a 0.48 percent increase from January 2024’s rate of 2.64 percent.
This suggests that prices rose at a quicker rate in February compared to January.
Despite efforts by the Central Bank to tighten monetary policy, such as increasing the benchmark interest rate to a record 22.75 percent at the latest Monetary Policy Meeting, inflationary pressures persist.
The decision to raise the policy rate was made to address the concern that inflation could become more persistent in the medium term, potentially leading to further regulatory challenges if left unchecked.
During the meeting, discussions focused on various factors contributing to inflation, including distortions in the foreign exchange market and the impact of speculators driving upward pressure on the exchange rate, resulting in a significant pass-through effect on inflation.
In light of these considerations, a substantial policy rate hike was deemed necessary to effectively combat inflation and stabilize the economy.
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