SAD: IMF Predicts High Inflation For Nigeria In 2018
According to Nigeria’s National Bureau of Statistics, NBS, inflation in Nigeria recorded a little drop from 16.1% in June to 16.05% in July.
This is the 6th consecutive decline since January this year.
Nigerians are happy with the development and optimistic that inflation will finally be tamed to single digit by next year.
But alas! The International Monetary Fund, IMF, has sad news for the country.
As far as the Fund is concerned, Nigeria’s inflation would not succumb to the law of gravity.
It will only go up especially from next year.
In its World Economic Outlook released in Washington on Tuesday, the Fund said it expects inflation in Nigeria and Angola to remain elevated at two-digit levels next year.Also Read: Nigeria’s Annual Inflation Remains Down In August
The IMF said this would reflect the persistent effects of past inflationary shocks coming from sharp currency depreciations as well as higher electricity and fuel prices and, “in the case of Nigeria, reflecting the assumption that monetary policy will remain accommodative going forward.”
But it is not all sad news as the Fund, however, expects sub-Saharan Africa, where growth in per capita incomes had on the average stagnated for the past 2 years, to improve overall in 2018.
It noted that the latest World Economic Outlook report had upgraded its global growth projections to 3.6% for this year and 3.7% for next year, well above 2016’s global growth rate of 3.2%, which was the lowest since the global financial crisis.
“Economic growth in sub-Saharan Africa is projected to reach 2.6% in 2017 and 3.4% in 2018 (broadly in line with the April forecast), with sizable differences across countries,” it said.
Watch The Prices Of Food Items In Nigeria As At August 29th 2017