Analysts warn of rising inflation amidst fuel hikes, naira depreciation

Oct. 15, 2024 - Punch Newspapers

Some market watchers have said that factors such as the depreciation of the naira and the fuel prices will likely see inflationary trends re-emerge. These projections came ahead of the release of the inflation figure for September by the National Bureau of Statistics.

Nigeria’s inflation figure stood at 32.15 per cent in August, a consecutive month of decline from 33.

40 per cent in July. Analysts at Meristem Research in their Macroeconomic Update projected that September’s headline inflation would rise slightly to 32.

21 per cent with food inflation expected to decrease to 37.26 per cent and core inflation moving upward to 27.

94 per cent compared to 27.58 per cent in August.

“For core inflation, we anticipate an upward trend, primarily driven by a 42.68 per cent surge in petroleum prices due to fuel scarcity, which significantly raised transport costs.

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