Amid forex scarcity, Nigeria’s inflation rate hits 24.08%

Nigeria’s inflation rate rose to 24.08% in July 2023, the highest in years, amid a shortage of foreign exchange.

According to the National Bureau of Statistics (NBS),  in its Consumer Price Index (CPI) report released on Tuesday, the July 2023 rate revealed an increase of 1.29% points when compared to the previous month’s which was 22.79%.

The CPI measures the rate of change in prices of goods and services.

On July 25, 2023, the Central Bank of Nigeria (CBN) raised the Monetary Policy Rate (MPR), which measures interest rate, from 18.5 percent to 18.75%.

The interest rate increase occurred amid soaring food prices and the rising cost of transportation occasioned by the removal of subsidy on Premium Motor Spirit (PMS) known as petrol with the price per litre jumping from N184 to about N600,  more than a 200% hike.

The CBN said, “Hiking the interest rate has made a lot of difference in moderating the rate of inflation”.

To address the forex shortage in the country with a dollar exchanging at over N900 to the naira, Acting CBN Governor, Folashodun Shonubi, on Monday, assured that the apex bank would take certain steps in the next few days to improve the liquidity in the market.