The most recent data from the National Bureau of Statistics showed that Nigeria’s monthly inflation increased by an additional 0.9 percent to 18.6 percent in June 2022.
The above figure continues the trajectory of a five-month consecutive rise at a time when other countries, including first world countries like the UK and US, are also facing economic challenges and an increased inflation rate. In fact, the UK statistics show an inflation rate of 9.1% in May 2022, representing a 40-year high while the United States also announced an inflation rate of 9.1% representing the highest rate in 41 years.
While the world battles these economic crises, African countries are also suffering the impact as the continent’s biggest economies have also announced record high inflation rates. To worsen these happenings, the hiked cost of energy globally has favoured the push in prices of goods and services to ridiculous levels.
In response to the financial crises, monetary regulators in different countries are raising their interest rates to control the rising cost of goods and services. The managing director of the Internal Monetary Fund (IMF), Kristalina Georgieva, has said “central banks from each country must take decisive steps to suppress inflation until it becomes clear that inflation rate is moving within a specific range.”
List of African countries and their inflation rates
- Sudan – 220.7% (April 2022)
- Zimbabwe – 191% (June 2022)
- Ghana – 29.8% (June 2022)
- Nigeria – 18.6% (June 2022)
- Rwanda – 16.1% (June 2022)
- Egypt – 13.2% (June 2022)
- Botswana – 12.7% (June 2022)
- Kenya – 7.9% (June 2022)
- South Africa – 6.5% (May 2022)
Why it matters
The inflationary pressure on Nigeria and other African countries is a global occurrence that financial institutions in every country must work around to create ease and soften the impact on its citizens.