Nigeria’s inflation rate soared to 24.08% in July 2023, the highest in years, due to a lack of foreign money.
According to the National Bureau of Statistics’ (NBS) July 2023 Consumer Price Index (CPI) report, the rate increased by 1.29% points from the previous month’s rate of 22.79%.
The CPI calculates the rate of change in product and service prices. The Monetary Policy Rate (MPR), which measures interest rates, was increased by the Central Bank of Nigeria (CBN) from 18.5 percent to 18.75% on July 25, 2023.
The increase in loan rates coincided with increasing food prices and growing transportation costs brought on by the loss of petrol subsidies, which caused the price of a liter to surge by more than 200%, from N184 to roughly N600.
The increase in interest rates, according to the central bank, “has made a significant difference in moderating the rate of inflation.”
Acting CBN Governor, Folashodun Shonubi, stated on Monday that the central bank would take specific actions in the coming days to enhance liquidity in the market in order to alleviate the country’s forex shortfall, where a dollar currently exchanges for more than N900.
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