Nigeria’s headline inflation hits 27.3% y/y in October
Nigeria’s headline Inflation rose to 27.3 per cent year-on-year In October continuing its upward pressure as food inflation remains a major driver hitting 31.5 per cent year-on-year. Sam Chidoka, CEO of Kairos Capital joins CNBC Africa to discuss the drivers of inflation in Nigeria as Ghana records the third consecutive month of inflation slowdown since August this year.
Wed, 15 Nov 2023 14:34:10 GMT
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AI Generated Summary
- Nigeria is facing a severe economic crisis with headline inflation reaching 27.3 per cent year-on-year in October, driven primarily by soaring food inflation at 31.5 per cent year-on-year.
- Ghana has made strides in reducing inflation by implementing monetary policies such as interest rate hikes and negotiating deals with institutions like the IMF. In contrast, Nigeria continues to grapple with escalating inflation rates due to factors like currency devaluation, food insecurity, and excessive money circulation.
- Effective collaboration between monetary and fiscal policies is crucial to combat inflation in Nigeria. While the Central Bank focuses on monetary tools, addressing structural issues such as transportation costs, farmer support, and corruption in fiscal policy are essential to achieve sustainable economic stability.
Nigeria is grappling with soaring inflation rates, with headline inflation reaching an alarming 27.3 per cent year-on-year in October. The country is facing significant economic challenges, especially in the wake of food inflation hitting 31.5 per cent year-on-year. Sam Chidoka, CEO of Kairos Capital, shed light on the drivers of inflation in Nigeria during an interview with CNBC Africa. Chidoka expressed concern over the lack of decisive action to combat inflation in Nigeria compared to some other African countries. While Ghana has made progress in curbing inflation, Nigeria is on a troubling 10-month streak of escalating inflation rates. One of the key contributors to inflation in Nigeria is the devaluation and depreciation of the currency. Additionally, insecurity in the food belt regions has fueled food inflation, given the country's heavy dependence on imports. The influx of ways and means funding, totaling over $23 trillion, has also exacerbated inflationary pressures in Nigeria.
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