June saw Nigeria’s inflation rate reach a record 28-year high of 34.19% in annual terms, according to official figures released on Monday.
However, several analysts speculated that the rate may have peaked because the impacts of the devaluation should start to wear off this month.
The most populous country in Africa saw an increase in inflation for the 19th consecutive month in June, according to data; it had risen from 33.95% in May.
After three rate hikes this year, the central bank’s upcoming announcement of another decision is expected to be widely followed. This one occurred about a week ago.
President Bola Tinubu’s policies, which include cutting back on energy and gasoline subsidies and depreciating the naira twice a year, have increased price pressure.
The worst cost-of-living crisis in decades has befallen millions of people as a result of the measures, hurting the poor.
Laptops 1000After calling off an indefinite strike last month, labour unions met with Tinubu this week to advocate for a new minimum wage.
Food and non-alcoholic beverages remained the main drivers of inflation in June, from data released by the National Bureau of Statistics on Monday. Food inflation increased from 40.66% to 40.87% in the preceding month.
Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), has declared that the bank will take all necessary steps to control inflation.
Capital Economics’ David Omojomolo, an economist specializing in Africa, predicted that inflation will begin to decline shortly, most likely in July, and fall below 30% by year’s end.
In a research note, he stated, “We believe that this will pave the way for the CBN to begin considering interest rate cuts in the near future.”
The central bank increased its key lending rate to 26.25% at its most recent monetary policy meeting in May. It must make a rate decision again by July 23.
