…as food inflation hits 24.35% yoy
Amid cash scarcity that hit the country following currency redesign by the Central Bank of Nigeria CBN, Nigeria’s headline inflation has risen to 21.91 percent in February as against the 21.82 percent recorded in January.
The National Bureau of Statistics NBS disclosed this in its February consumer price index CPI report released yesterday adding that the food inflation index also increased slightly to 24.35 percent in February 2023 from 24.32 percent in January 2023 due to increase in the prices of some food items.
Reacting to the latest rise in inflation, Professor Jonathan Aremu, Consultant ECOWAS Common Investment Markets, said it is not a surprise to him.
According to him as long as the nation is not engaged in production activities, the price of goods must go up.
In his words, “Without economic stability to enable people to produce, the inflation will continue to go up. Government should put in place necessary infrastructure like power and good roads. We also need to address the issue of insecurity and the energy crisis. The fuel queues are still there and that is adding to the cost of transportation.”
He said what the Central Bank of Nigeria has succeeded in doing is to hold the money, but that has also reduced production which invariably will lead to price increase.
“It is a very simple logic, if the people do not have money to produce, the few products available become expensive because they will now have more people demanding them. If there is money, companies can buy raw materials and traders can go to villages to buy their wares. That is not happening because there is no money,” he said.