Analysis

How inflation poses bleak Christmas for consumers

 

Analysis

 

 By Adetunji Faleye

There is no doubt that inflation is running red-hot in Nigeria, sprinting 2 kilometres per minute when put into consideration the skyrocketing prices of food stuff and other household items in the market.

 

This poses a wrong signal to many homes that Christmas this year looks bleak and devoid of accustomed Yuletide festivities.

 

The heavy fall of Naira against major currencies across the world is at the front, piling bad news atop bad news daily to the woes of every Nigerian.

 

Recently, a bag of rice changed gear (long grain) from N35,000 to N45,000, while the short grain is sold for N38,000 from N32,000. Also, a container of paint for garri is N700 from N400.

 

Not only this, paint container for beans is now selling for N2,400 from N2,000. Sachet water producers also sell a bag of water for N200, putting blame on the high cost of materials including water, a free gift from God.

 

Cooking gas has gone beyond the reach of the common man, as 12 kg gas container is N8,400 jumping from N6,000 early in the year.

 

Car repair prices have also gone up astronomically. For instance, if a consumer had a N9000 car repair in June 2022, that same car repair would have been N15,000 – N20,000 at present. Meaning his N100,000 in the bank is a little less valuable.

 

Sadly, consumers pay more and get less for most of the commodities produce in the country, as most brands increase the prices of their products at will without considering the effects. The most annoying is peanuts with a cover that is irritatingly blown out of proportion with scanty peanuts in it.

 

There is bound to be winners and losers in every economy going through a situation like this, with consumers emerging as the losers. However, the longer high inflation persists, the harder it is to find winners as inflation creeps into every balance sheet and income statement of an organisation.

 

Clearly, the most obvious impact of inflation is that it hurts consumer’s purchasing power. If a consumer buys as many goods and services as he did before inflation, his quality of living will eventually diminish by now. Less purchasing power really hurts families that are already experiencing financial hardship.

 

With rising prices for essentials eating into consumer’s budgets more than normal, the consumer will probably not have enough funds that can cover his expenses during Christmas and New Year festivities.

 

The situation may extend beyond Christmas and creeps into New Year with decreased purchasing power to cover school fees and other attendant spending.

 

 

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