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Nigeria Ranks 12 Among Africa Countries with Highest Inflation

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Nigerian Inflation

CEM REPORT, ECONOMY | Nigeria has appeared at number 12 among African countries with highest inflation ranking after January inflation reports according to the information found in Trading Economics website.

Nigeria whose inflation rate for January stood at 21.82% appear below 11 other countries in the African continent experiencing high inflation rate. They include Zimbabwe with the highest rate at 230% having edged downward from 244% December rate.

Others are Sudan with 83.6%, Ghana with 53.6%, Sierra Leone with 38.48% and Ethiopia appearing at number 5 with 33.9%. The inflation rate for South Sudan, Rwanda, Burundi and Malawi are 31.3%, 31.1%, 28.62% and 25.9% respectively. Tenth on the list is Egypt with 25.8% followed by Sao Time and Principe with 25.2% at number 11.

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The 10 countries with the lowest inflation in Africa are led by Republic of Benin with 1.13% followed by Niger with 2% and Seychelles with 2.39%. Others are Equatorial Guinea, Djibouti, Libya and Eritrea with 2.9%, 4.1%, 4.1% and 4.5% respectively.

At number 8, 9 and 10 are Ivory Coast with 4.8%, Tanzania with 4.9% and Somalia with 5.6%.

Countries with the biggest jump in inflation rate between December and January are South Sudan whose inflation jumped 117.36% from 14.4% to 31.3%. Cape Verde occupying 14th position in highest inflation ranking saw a 103.95% upward movement from 7.6% to 15.5%.

While some countries saw an increase in inflation, others like Botswana, Mali and Mozambique returned to a single digit inflation. Botswana’s inflation significantly decreased to 9.3% in January from 12.4% in December. For Mali, Inflation decreased in January to 8% from 10.2% in December and for Mozambique, the figure slipped back to 9.78% from 10.91%.

Generally, the pandemic and the Russian war with Ukraine has caused rise in inflation across the globe. In reaction, hike in interest rate became one prominent weapon deployed by many countries with many of them exceeding decades record. While some countries saw a downward response, other critical economic factors precluded such expected responses in other countries.

Nigerian inflation is one that didn’t get a significant response apart from the slight decrease seen in December. Tightening monetary policies are ineffective on inflation control since it goes along fiscal deficit monetization or other direct lending interventions. This conditions has also affected countries like Malawi and Zimbabwe.

More so, instability in production cost occasioned by fluctuation in the supply of production inputs such as energy (power and fuel) often put pressure on commodity prices. This qualifies inflation in Nigeria as more of cost-push rather than demand-pull.

The forecast for 2023 is that inflation in Sub Sahara Africa will average 12.5% with a slower disinflation than all other continents; Latin America and Asia.

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