“In January 2022, the urban inflation rate grew to 16.17 percent from 17.03 percent in January 2021, while the rural inflation rate increased to 15.06 percent from 15.92 percent in January 2021.
“On a month-to-month basis, the urban index grew to 1.53 percent in January 2022, down 0.34 percent from the pace of 1.87 percent in December 2021.”
“The rural index also increased to 1.42 percent in January 2022, down 0.35 percent points from 1.77 percent in December 2021,” according to the report.
What is Nigeria’s current inflation rate in 2020?
Food inflation continued to grow, which contributed to the increase. Food inflation, as measured by the composite food index, rose to 17.37 percent in December 2021, down from 19.56 percent in December 2020, according to the NBS.
What is Nigeria’s current inflation rate in 2022?
Inflation is expected to average 13.6 percent in 2022, according to the FocusEconomics Consensus Projection panel, which is unchanged from last month’s forecast. Inflation is expected to average 11.8 percent in 2023.
Is Nigeria’s GDP growing or shrinking?
Nigeria’s GDP increased by 3.4 percent in 2021, the highest level since 2014. Since President Muhammadu Buhari’s election victory in 2015, this is the first yearly growth rate of more than 3%. The GDP expanded by 6.3 percent in 2014.
What will be the rate of inflation in 2022?
The annual rate of inflation in the United States increased to 7.9% in February 2022, the highest since January 1982, which was in line with market predictions.
Why is inflation in Nigeria so high?
The National Bureau of Statistics reported Wednesday that Nigeria’s inflation rate declined for the eighth consecutive month in November to 15.40 percent, down from 15.99 percent a month earlier, despite continued increases in food costs.
The Consumer Price Index, which measures the cost of goods and services, climbed by 15.40 percent year over year in November 2021, according to the statistics office.
This is 0.51 percentage points higher than the rate of 14.89 percent in November 2020.
“According to the report, “increases were reported in all COICOP divisions that provided the Headline index.”
“The Headline index climbed by 1.08 percent month over month in November 2021, which is 0.10 percent higher than the rate of 0.98 percent in October 2021.”
According to the agency, the composite food index increased by 17.21% in November 2021, compared to 18.30% in November 2020.
According to the NBS, price rises in bread and cereals, fish, food products, potatoes, yams, and other tubers, oil and fats, milk, cheese, and eggs, as well as coffee, tea, and cocoa, contributed to the increase in the food index.
The food sub-index climbed by 1.07 percent month over month in November 2021, up 0.16 percent points from 0.91 percent in October 2021, according to the report.
Why is Nigeria’s inflation so high?
Nigerians now spend nearly three times the price they did in 2014 for the same amount of products and services. According to the World Bank, inflation pushed many Nigerians into poverty in 2021. If the Nigerian economy’s current inflation crisis persists in 2022, there is no doubt that economic hardship will worsen, making it more difficult for many Nigerians to survive.
Nigeria’s high inflation can be attributed to a high exchange rate, high taxes, insecurity, insufficient infrastructure, and corruption. The cost of conducting business in Nigeria has skyrocketed due to inflation. Manufacturers are struggling to keep up with rising production costs.
Segun Ajayi-Kadir, the director-general of the Manufacturers Association of Nigeria (MAN), confirmed that the manufacturing sector was still fighting for existence because of the high cost of production. He went on to say that Nigeria’s current inflationary situation was hurting the industrial sector’s profitability and was largely to blame for the country’s low competitiveness.
In Nigeria, the increase in the exchange rate has been a significant challenge. In 2021, it pushed up the prices of imported raw materials, production costs, and commodity prices.
According to a study published by the Central Bank of Nigeria (CBN), the official average exchange rate of a US dollar to the naira in 2021 was N403.5858. The average exchange rate on the parallel market was as high as N560. Nigeria’s 2022 budget forecasted an N410.15 per dollar exchange rate. If the expected rate holds, the parallel market exchange rate could reach to N560 in 2022. The already high cost of production would be exacerbated by a high exchange rate, resulting in increased inflation in 2022.
Insecurity in Nigeria’s Northern and Middle Belt regions could lead to high prices in 2022. Fear of being abducted, raped, or killed by terrorists has kept the majority of farmers from returning to farming. In 2022, this might result in food shortages and high agricultural product prices in Nigeria.
What is the inflation rate for 2021?
The United States’ annual inflation rate has risen from 3.2 percent in 2011 to 4.7 percent in 2021. This suggests that the dollar’s purchasing power has deteriorated in recent years.
What is a reasonable rate of inflation?
The Federal Reserve has not set a formal inflation target, but policymakers usually consider that a rate of roughly 2% or somewhat less is acceptable.
Participants in the Federal Open Market Committee (FOMC), which includes members of the Board of Governors and presidents of Federal Reserve Banks, make projections for how prices of goods and services purchased by individuals (known as personal consumption expenditures, or PCE) will change over time four times a year. The FOMC’s longer-run inflation projection is the rate of inflation that it considers is most consistent with long-term price stability. The FOMC can then use monetary policy to help keep inflation at a reasonable level, one that is neither too high nor too low. If inflation is too low, the economy may be at risk of deflation, which indicates that prices and possibly wages are declining on averagea phenomena linked with extremely weak economic conditions. If the economy declines, having at least a minor degree of inflation makes it less likely that the economy will suffer from severe deflation.
The longer-run PCE inflation predictions of FOMC panelists ranged from 1.5 percent to 2.0 percent as of June 22, 2011.