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Nigeria’s inflation rate hits 28.20% in November, highest in 18 years

Published

1 year ago

December 15, 2023

The largest economy in Africa saw a worsening cost-of-living crisis in November when Nigeria’s annual inflation increased to 28.20% for the eleventh consecutive month, the highest level in eighteen years.

The last time Nigerians experienced this level of inflation was in August 2005, thus increasing pressure on the central bank to address the rise.

According to the data from the National Bureau of Statistics, consumer inflation rose to 28.20% in November from 27.33% in October. The October figure was a 0.61 percentage point increase from the 26.72% that was recorded in September.

Earlier in the week, the World Bank warned Nigeria’s central bank needed to control inflation by tightening monetary policy, building market confidence around free foreign exchange pricing, and phasing out so-called “ways and means” advances to the government.

According to the statistics bureau, increases in the prices of food and non-alcoholic drinks were the main cause of annual inflation in November. The majority of Nigeria’s inflation is attributed to food inflation, which increased to 32.84% in November from 31.52% in October.

To control inflation, Olayemi Cardoso, the newly appointed governor of the central bank, has promised to gradually phase out the institution’s fiscal intervention programmes. After resuming its Open Market Operations (OMO) to aid in containing money supply, Cardoso stated that the central bank intended to tighten policy over the following two quarters to control inflation.

During its most recent monetary policy meeting in July, the central bank decided against the more anticipated 25 basis point hike, stating that a moderate increase would be preferable to stabilise inflation expectations while still promoting investment.

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Moroccan annual inflation rises to 0.8% in November

Published

19 hours ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”