Inflation and You!!
What does inflation mean to you?
Is it the high prices of goods and services or the decreased purchasing power of your local currency? These are valid definitions, but in general terms, inflation refers to the persistent rise in the prices of goods and services in an economy.
Inflation in Nigeria
Nigeria in recent times has experienced high levels of inflation with its most recent general inflation figure being 15.99%, and food inflation being 18.34% for the month of October.
What does this mean for Nigerians?
With the two most important inflation metrics being used, what this means for Nigerians is that prices paid for goods and services in the country as well as foodstuffs are 15.99% and 18.34% (respectively) higher than what they were in the corresponding month last year.
What does this mean going forward?
The International Monetary Fund (IMF) forecasts Nigeria’s inflation rate for 2022 and 2023 to be 13.3% and 11.8% respectively. Going forward, this shows that prices for goods and services as well as foodstuff wouldn’t be as high as they are currently.
They will still be high, though, only that the rate of increase will be slightly slower.