W’Bank Predicts Nigeria’s Inflation Rate May Be Among World’s Highest This Year
BUHARI
By Our Reporter
The World Bank has projected that Nigeria may be among other countries whose inflation rates may be highest in 2022.
The bank said the implication is increasing prices of goods which will end up worsening the welfare of Nigerians.
The bank described such inflation rates as the seventh highest among the Sub-Saharan African countries in 2022.
In the Bank’s November edition of its Nigeria Development Update, Punch reports that the bank identified high inflation as frustrating “Nigeria’s economic recovery and eroding the purchasing power of the most vulnerable households”.
The bank added in the report that in the absence of measures to contain inflation, “rising prices will continue to diminish the welfare of Nigerian households.”
According to the report, the adverse effect is that eight million Nigerians would be pushed into poverty.
The report added, “If inflation had been closer to the CBN’s goal of nine per cent in 2021, the average Nigeria’s consumption would have been 15 per cent higher, and eight million Nigerians would have not fallen into poverty.
“If double-digit inflation persists during 2022-2023, rising prices will distort consumption, investment, and saving decisions of the government, households, and firms, with adverse ramifications for long-term borrowing and lending.
“Over time, the disproportionate impact of inflation on lower-income households and those working in sectors with low savings (e.g, agriculture) will exacerbate inequality. Ultimately, inflation will not only negatively affect incomes, but also economic productivity and job creation, further constraining the recovery.”
About Post Author
