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Nigeria’s Inflation Rate Projected To Hit 21.5% In 2024

Nigeria’s inflation is projected to drop to 21.5% in 2024, from the 24.5% recorded in 2023. This is according to the 2024 Macroeconomic Outlook produced by the Nigerian Economic Summit Group (NESG).

According to the report, launched on January 24, 2024, the decline in inflationary pressures is anticipated to result from reduced reliance on Ways & Mean financing for the budget deficit, a stable structural exchange rate, and additional proactive monetary measures implemented by the Central Bank.

The report also noted that food inflation is poised to persist as a primary contributor to overall inflation, propelled by increased credit costs, security concerns, and internal displacement issues.

NESG also made projections about the different possible inflation behaviours in 2024. The report noted that in the occasion of “stagnation”, the rate could hit 25.1%. Stagnation implies a situation where there is a prolonged period of economic slowdown, low or no growth, high unemployment, and overall economic inertia.

In the case of “obsolescence”, inflation could hit 28.5%. Obsolescence implies a situation where existing economic structures, policies, or practices have become obsolete, leading to potential challenges or disruptions in the economy. And in the case of a “comprehensive overhaul”, inflation could hit 21.5%.

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