- Nigeria’s inflation rate has remained high for the past 9 years, way before COVID-19 and the disruptions it imposed.
- Experts have argued that Nigeria’s inflation results from excess money supply in the economic system chasing too few goods.
- Nigeria’s inflation climbed to a new 18-year high in November, matching a record level last seen in 2005.
In 2021, the global economy experienced an inflation surge. This was the first time in many decades that inflation hit double digits in most developed and emerging economies. In the United States, inflation peaked at 9.1 per cent in July 2022, the highest in 40 years.
Such high levels of inflation were unusual and uncomfortable, and the Central Banks in the affected countries tackled it ruthlessly. The applied policy actions paid off and inflation has been moderating fast.
However, what obtains in Nigeria paints a starkly different image from what the rest of the …
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