Breaking News: Nigeria’s yearly inflation rate has continued to soar, reaching an all time high of 35.95% despite an avalanche of monetary policies introduced by the CBN aimed at quelling the inflationary trend.
This has resulted in an unprecedented hardship that has stoked public anger and frustration against President Tinubu’s economic policies.
9AM News Nigeria recounts that since the removal of fuel subsidy on May 29 2023 Nigeria has seen inflation rate rise uncontrollably without respite for 18 straight months, while the value of the naira has severely plunged, falling to as low as 1,600 naira to a dollar in recent days.
9AM News Nigeria observed that the hikes in the prices of commodities are clearly a consequence of Tinubu’s reforms especially the withdrawal of subsidies for electricity, petroleum and the devaluation of the naira two times within a space of one year.
Nigeria’s labour unions which recently embarked on a now suspended strike have hammered to the government the need to review the country’s minimum wage as the current inflationary situation have rendered millions grappling with severe cost of living crisis and inability to afford items as basic as food.
National Bureau of Statistics’ data shows that food and beverages continue to take the biggest hits by inflation especially within the months of May and June 2024.
Food inflation has risen to as high as 41%.
In May 2024 the Central Bank of Nigeria raised interest rates as a way of responding to the relentlessly rising inflation. CBN governor Yemi Cardoso announced that the interest rates will be kept high for as long as needed until inflation slows down.
It is neither clear nor rational to Ogasabi how keeping interest rates high, a measure which is punitive and counterproductive to businesses could help to mitigate the rising inflation.
