In a recent update on Nigeria’s economic outlook, the International Monetary Fund (IMF) has forecast a gradual decrease in inflation rates.
The surge in inflation to 33.2 percent in March, attributed to exchange rate adjustments and economic reforms, is expected to decline to 23 percent next year and further to 18 percent in 2026.
Despite the improvement, these rates remain elevated compared to previous forecasts.
The IMF cited the impact of exchange rate adjustments on import costs and other goods as driving factors behind the inflation spike.
Nigeria’s National Bureau of Statistics confirmed the inflation surge, particularly in food prices, which rose above 40 percent earlier this year.
The IMF has revised its inflation projection for the current year to 26 percent, considering stringent monetary policies and interest rate hikes implemented to curb inflation.
Meanwhile, global economic concerns persist, with discussions on the implications of geopolitical tensions on oil prices and high services inflation in various countries.
The IMF emphasized the need for robust policy frameworks to mitigate inflation resurgence and maintain global financial resilience amidst changing trade dynamics.
