Rising prices of food stuff have made Nigeria’s headline inflation jumped to a 21-month high of 12.13% in January, according to the National Bureau of statistics.
Indeed, food inflation has continued to remained the major culprit, recording the highest rate of change amongst the sub-indices.
Specifically, the rising inflation trend may have elevated external imbalances and slow growth recovery.
Specifically, the rising inflation trend may have elevated external imbalances and slow growth recovery.
Acording to analysts at the Financial Derivatives Company, the ugly development may have informed IMF’s decision to revise Nigeria’s 2020 growth forecast downwards to 2% from 2.5%. They further argued that the latest negative outlook on Nigeria’s economy is proof that the country is in dire need of policy reforms to build its resilience against external shocks.
