Governor's Optimistic Projection Inflation Set to Decrease in 2024
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has expressed optimism that the country's inflation rate will witness a significant decline, projecting it to reach 21.
4% in 2024.
Cardoso shared this outlook during his keynote address at the presentation of the macroeconomic forecast report for 2024 by the Nigerian Economic Summit Group.
Inflation Targeting as a Key Strategy
Cardoso emphasized that the government intends to address the prevailing inflationary pressures, which peaked at 28.
9% in December.
He highlighted the role of the CBN's inflation-targeting policy in curbing inflation and anticipates that this approach will lead to a noteworthy reduction.
Additionally, he suggested that the anticipated decrease in inflation could have positive implications for businesses.
Impact on Businesses and Economic Environment
Cardoso outlined that the expected decline in inflation for 2024 is likely to create a more stable and predictable cost environment for businesses.
Moreover, he hinted at the possibility of lower policy rates, which could stimulate investment, foster economic growth, and generate employment opportunities.
The governor's positive outlook aims to instill confidence in the economic landscape.
Contrasting Statistics Latest Inflation Report Reveals Alarming Figures
In contrast to the optimistic projection, the latest inflation report by the National Bureau of Statistics (NBS) paints a concerning picture.
The report disclosed that Nigeria's headline inflation surged to 28.
92% in December from the 28.
20% recorded in November 2023.
Notably, food inflation also witnessed an increase, rising to 33.
93% from 32.
84% in November 2023.
Year-on-Year Comparison Highlights Significant Rise
On a year-on-year basis, the NBS report revealed a substantial increase in the country's inflation, rising by 7.
58% from 21.
34% in December 2022 to 28.
92% in December 2023.
The statistics underscore the severity of the inflationary challenge faced by Nigeria, raising questions about the effectiveness of the proposed measures in mitigating the economic impact.
Detailed Analysis of December 2023 Inflation Rate
The NBS report further delved into the specifics, stating, "In December 2023, the headline inflation rate increased to 28.
92% relative to the November 2023 headline inflation rate, which was 28.
20%.
Looking at the movement, the December 2023 headline inflation rate showed an increase of 0.
72% points when compared to the November 2023 headline inflation rate.
" This detailed breakdown provides a comprehensive understanding of the dynamics influencing the inflation scenario in Nigeria.
