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Nigeria’s inflation rate hits 29.9% as currency, cost-of-living crises deepen

Published

10 months ago

February 15, 2024

Due to the country’s currency falling (Naira) to record lows and skyrocketing food prices, Nigeria’s inflation rate surged further in January to hit 29.90% annually.

This was revealed by the Bureau in its January 2024 Consumer Price Index (CPI) report, which also noted that food inflation rose to 35.41 percent during that time from 33.93 percent in December 2023.

Price pressures are mostly caused by the depreciating naira, which had its second devaluation in less than a year last month. Other contributing factors include the costs of electricity and logistics related to infrastructural issues.

In terms of yearly growth, the largest contributor to inflation in January was the food and non-alcoholic beverage category. From 33.93% in December to 35.41% in January, food inflation increased.

NBS said: “In January 2024, the headline inflation rate increased to 29.9% relative to the December 2023 headline inflation rate, which was 28.92%.

“Looking at the movement, the January 2024 headline inflation rate showed an increase of 0.98% points when compared to the December 2023 headline inflation rate.

“Furthermore, on a month-on-month basis, the headline inflation rate in January 2024 was 2.64%, which was 0.35 percentage points higher than the rate recorded in December 2023 (2.29%).

“This means that in January 2024, the rate of increase in the average price level is greater than the rate of increase in the average price level in December 2023.”

When the central bank meets later this month, some analysts think the statistics may influence it to announce a significant increase in interest rates. Nigeria, the most populous and economically significant nation in Africa, is going through its worst inflation since the middle of 1996, which is eroding savings and earnings and worsening the crisis caused by rising living expenses.

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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.”