Nigeria Inflation Rate Increase.

In view of the festive season ahead, business analysts are predicting a rise in inflation rates.

Why it matters?
Over the last few months, there has been a fall in the inflation rate. In September, inflation rate was at 16.36 percent, and this rate fell to 15.99 percent the next month. These figures are an improvement to the 18.12 percent that it was in April of this year.

With December gently approaching, business analysts at CSL Stockbrokers are predicting a rise in these rates. In a report, they said, “Looking ahead, we project inflation will maintain its descent throughout the year, supported by the high base in the prior period. The government sets 13 percent as the inflation target for 2022.”

“However, as we approach the festive season, considering expectations of increased demand, we expect an increase in monthly inflation reading for the last two months of the year.”

Analyst at Cordros Capital also supported the report of CSL Stockbrokers by saying, “In addition, we expect the upward pressures on food prices to be magnified by the increased demand for food items as the people prepare for the year-end festive season.”

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