Inflation rate in Nigeria today is 35.9% on average but certain food items have their prices increased by 100 to 1000% compared with 2023. Crate of eggs is 7000. It was 750 back before this government. Carton of indomie noodles that is becoming a staple is 9000 super pack from 1900. Electricity has increased by 900% so is price of petrol from 198 to 1000 per liter.
Most central banks favour an inflation target that is in the region of 2% to 2.5% for a healthy economy.
Nigeria has 12.88% inflation in 2020,11.4% in 2019,12.09% in 2018 and 16.6% in 2017. All along Nigeria has never had a healthy economy.
Inflation is like the temperature of an economy. High inflation makes nonsense of salaries and rubbishes debts.
The UK targets 2% inflation and Bank of England keeps inflation rate under close watch. Germany has 0.2% inflation rate since September 2020. South Africa,our continental rival has 3% rate.
Some economists argue there should be a higher target in times of recession, such as 3% but not more. This can promote higher growth, by keeping interest rates lower for longer.
Since eternity, Nigeria has been overheating its economy. It is like human body running on high temperature. Imagine a person running high fever all his life. Ghana has managed to pull its inflation to 10%. With a runaway inflation,most Nigerian workers can’t feed their families.
But we should also know that inflation is not a natural disaster,it is a government policy that can be adjusted by right thinking and competent leaders.
Problem is do Nigerian leaders know or care?/Aliyu Nuhu
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