More hardship as inflation rate to average 20.5 per cent in 2023


By Adetunji Faleye

There are indications that consumers will face severe hardship this year (2023) as inflation rate in the country is expected to average 20.5 per cent.

In the 2023 Macroeconomic Outlook Report, titled “Nigeria in Transition: Recipes for Shared Prosperity,” by Nigeria Economic Summit Group (NESG), it was stated that inflationary pressure is expected to remain elevated, driven by structural, cost and monetary factors.

It was also stated that food inflation will remain the fundamental driver of inflation due to the enduring impact of flooding, increased production costs due to increased cost of credit, insecurity and displacement.

The report also stated that existing fuel shortages and the removal of fuel subsidies will continue to increase the core components, especially transportation.

While unemployment rate will increase to 37 per cent, the poverty headcount will amplify to 45 per cent due to weak performance in the job-elastic sectors, low labour absorption of sectors that will drive growth, and population growth estimated at 3.2 per cent will lead to a decline in real per capita income.


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