Financial Derivative Company (FDC) Limited has projected that Nigeria’s headline inflation for 2023 will be at an average rate of 16.2 per cent.
The FDC economic report said that analysts believe that there will be some relief in 2023 as geopolitical tension fades and commodity prices return to their pre-COVID levels. This according to the report will bring succour to the pressure on domestic prices and inflation is expected to start moderating from the second quarter of 2023, as Nigeria’s headline inflation for 2023 is projected to average at 16.2 per cent.
Managing Director/ Chief Executive Officer of the Financial Derivative Company, Bismarck Rewane also blamed the increase in the prices of food items across the country on the floods that affected most of the food producing States during harvest period of September and November last year.
While making projection for the nation’s inflation rate, he said the implications of this have elevated prices of food items and squeezed consumer income, reflecting more on the food inflation that has remained high since January last year.
He said as result of this the food inflation subindex soared to 24.13.per cent in November in 2022, up 7 per cent when compared with the January rate of 17.13 per cent, and the highest since October 2005.
He listed some of the inflation-stoking factors to include the exchange rate inflation- stoking, the decline in food production due to insecurity, war-induced supply chain disruption,high fertilizer prices, and surging logistic costs.
