Rising Inflation Hits Nigeria’s Economy: Soars to 28.92% in December 2023, Highest in Nearly 28 Years

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Nigeria’s economy faces heightened inflation, reaching 28.92% in December 2023, marking a year-long upward trend.

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Factors contributing to this surge include increased transportation costs, climate change impacts on food production, domestic security challenges, and the depreciation of the Nigerian Naira against the US dollar.

The current rate is a nearly 28-year high, approaching the 29.51% recorded in July 1996, exceeding the Central Bank’s target range of 6% to 9%.

Major contributors to the rise include food and non-alcoholic beverages, accounting for 51.7%. Inflation shows regional variations, impacting different states.

Food inflation, driven by various factors, plays a significant role, reaching 33.93% year-on-year. Core inflation, excluding volatile items, rose to 23.06% in December 2023.

The global inflation movement, influenced by external shocks like the war in Ukraine, poses a threat to growth expectations.

Nigeria’s recent inflation surge negatively affects the economy, eroding purchasing power and increasing poverty.

In Predictions by Cowry Research suggest a range of 22% to 34% year-on-year inflation in 2024, highlighting the uncertainty and emphasizing the role of government policies in addressing underlying issues.

A gradual moderation in headline inflation is expected in January 2024, reaching 28.82%.

Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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