0
0
Amid a scarcity of foreign exchange, Nigeria’s inflation rate surged to 24.08% in July 2023, marking the highest level seen in years.
In its Consumer Price Index (CPI) report released on Tuesday, the National Bureau of Statistics (NBS) revealed that the rate for July 2023 exhibited a notable uptick of 1.29 percentage points compared to the preceding month, which had registered at 22.79%.
The CPI is a metric utilized to gauge the fluctuations in the costs of commodities and services.
On the 25th of July, 2023, the Central Bank of Nigeria (CBN) opted to elevate the Monetary Policy Rate (MPR), a gauge of interest rates, from 18.5 percent to 18.75%.
This interest rate adjustment was implemented in the midst of escalating food prices and a surge in transportation expenses, stemming from the cessation of subsidy on Premium Motor Spirit (PMS), commonly referred to as petrol. This alteration led to a substantial price surge, with the per-liter cost leaping from N184 to approximately N600—a staggering increase of over 200%.
The central bank stated, “The decision to increase the interest rate has significantly contributed to the moderation of the inflation rate.”
In response to the prevailing forex scarcity within the nation, where the dollar is exchanging at a rate exceeding N900 to the naira, Acting CBN Governor, Folashodun Shonubi, announced on Monday that the central bank will implement specific measures in the upcoming days aimed at enhancing market liquidity.
