Photo: David Malpass, World Bank Group President
The World Bank says Nigeria’s current 20 per cent inflation rate is above the bank’s projection of 15.5 per cent .
According to the global financial institution, this is in spite of Nigeria’s raising of its Monetary Policy interest rate,
The bank projected in a recent report that Nigeria’s inflation rate was going to be higher than it had anticipated and would hit 15.5 percent.
The report is entitled, ‘’Nigeria Development Update (June 2022): The Continuing Urgency of Business Unusual.’
Nigeria’s latest inflation figure from the National Bureau of Statistics showed that the nation’s inflation rose to 18.60 percent in June, the highest since January 2017 when it was 18.72 percent.
“In June 2022, the inflation rate increased to 18.60 percent on a year-on-year basis. This is 0.84 percent points higher compared to the rate recorded in June 2021, which is 17.75 percent.
“This means that the headline inflation rate increased in the month of June 2022 when compared to the same month in the previous year (i.e., June 2021). Increases were recorded in all COICOP divisions that yielded the Headline index.
“On a month-on-month basis, the headline inflation rate increased to 1.82 percent in June 2022, this is 0.03 percent higher than the rate recorded in May 2022 (1.78 percent),” the NBS said.
It further revealed that urban inflation rose to 19.09 percent and rural inflation hit 18.13 percent in June 2022, in spite of the recent interest rate increase by the Central Bank of Nigeria.
The Central Bank of Nigeria (CBN) had in May raised Nigeria’s interest rate from 11.5 percent to 13 percent in a bid to address inflation in the country.
CBN Governor, Godwin Emefiele, had explained that the Monetary Policy Committee had to increase the monetary policy rate by 150 basis points to prevent inflation.
“Six members voted to raise the MPR by 150 basis points, four members’ by 100 basis points, and one member, by 50 basis points.
“Members expressed deep concern about the continued uptrend of inflationary pressure in spite of the gradual improvement in output growth.
“Committee notes that the current rise in inflation is inimical to growth and the full recovery of the Nigerian economy,” Emefiele had stated
The World Bank also warns that rising inflation further will push millions of Nigerians into increased poverty in 2022.
