Rising inflation: LCCI Urges Coordinated Action as Inflation Hits Alarming 28.20%

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In a statement released by Dr. Chinyere Almona, the Director General of the Lagos Chamber of Commerce and Industry (LCCI), concerns are raised regarding the alarming surge in inflation rates based on the Consumer Price Index (CPI) data from the National Bureau of Statistics (NBS). The data reveals a relentless upward trend, with inflation reaching 28.20% in November, marking a 0.87% points increase from the previous month and a substantial 6.73% points surge compared to the corresponding month in 2022. This surge, the highest since August 2005, is attributed to continued Naira depreciation, escalating fuel and food prices.
The report delves into specific sectors, highlighting a notable increase in the food inflation rate to 32.84% in November, signifying a 1.32% points increase from the previous month and an alarming 8.72% points surge compared to the same month in the previous year. While core inflation experienced a marginal decline of 0.19% points to 22.38%, it recorded a significant 4.39% points increase compared to November 2022.
Breaking down the contributions to the overall price increase, the data points to food and non-alcoholic beverages as the primary contributors at 14.61%, followed by housing, water, electricity, gas, and other fuel at 4.72%. Clothing and footwear contributed 2.16%, transport 1.84%, and furnishings & household equipment & maintenance 1.42%.
Expressing deep concern over eleven consecutive months of inflation acceleration, the LCCI emphasizes the need for intensified efforts by the Central Bank of Nigeria (CBN) in the battle against inflation. The chamber notes that the sustained uptick in inflation poses investment disincentives to businesses, tightens consumers’ income and spending, and constrains manufacturing productivity in the country. Anticipating ongoing strategies by economic agents to mitigate inflationary pressures, the LCCI calls for collaborative actions.
The statement urges the CBN to adopt a well-calibrated policy mix that addresses the unique challenges facing the Nigerian economy, emphasizing economic diversification, effective interest rate policies, judicious exchange rate management, and inflation targeting. The LCCI believes these measures can significantly contribute to stabilizing the Naira and fostering a robust and resilient economy.
Furthermore, the LCCI implores the government to address challenges hindering domestic production, streamline the distribution of goods within the country, and tackle issues impacting agriculture productivity. The statement concludes with a strong plea for continued efforts to address insecurity and other factors affecting food supply in the country. The statement was issued on December 16, 2023.

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