Nigerians have been encumbered with worsening living condition occasioned by rising insecurity, low disposable income and rising cost of living. But the end may not be in the immediate sight as some analysts see further rise in inflation thereby further impoverishing consumers.
Analysts at the Financial Derivatives Company (FDC) and others see another hike in January headline inflation to 12.05% from the current level of 11.98%.
Friday Ameh, energy analyst concurs saying the tumbling of oil prices at the international market will impact negatively the objectives of this year’s budget.
” Nigerians should expect harger times as the economy is sinking due to conflicting and belated policies from the Central Bank of Nigeria, (CBN). Already the budget is being implemented below the exchange rate and production output. What do these tell you or show us as a nation? Lives are being wasted on daily basis and people especially farmers and entrepreneurs are scared of traveling or going to their farms, ” Ameh said
According to FDC analysts, ” This will be the 5 th consecutive monthly increase in the year-on-year inflation rate. However, the pace of increase is slowing from 0.36% in October 2019 to 0.07% in January 2020, primarily because of the reduction in the base year effects and a squeeze in general purchasing power.”
They further alluded to the fact that ” The MPC, at its last meeting, emphasized the determination of the CBN to rein in inflation because of its negative impact on GDP growth and unemployment. Consistent with headline inflation, we also expect that food and core inflation rates would increase to 14.7% and 9.4% respectively.”