The ongoing increase in inflation (year over year) and its effects on consumer spending and manufacturing in the nation have deeply alarmed the Lagos Chamber of Commerce and Industry (LCCI).
Dr. Chinyere Almona, the Chamber’s director general, stated that the forecast for inflation seems dire after nine straight months of acceleration. According to data from the National Bureau of Statistics (NBS) on the Consumer Price Index (CPI), the inflation rate increased year over year in September, rising from 25.80 percent in August to 26.72 percent in September. This represents an increase of 0.92 percentage points and 5.94 percentage points over the 20.77 percent recorded in the corresponding month in 2022.
After rising by 3.2% in August, consumer prices increased by 2.1% in September on a monthly basis. She stated that rising food prices and core inflation were the main causes of this.
“The rate of food inflation rose to 30.64 percent for the month, meaning that it increased by 1.30 percentage points from 29.37 percent in the previous month and by 7.30 percentage points from 23.34 percent in the 2022 corresponding month.” In a similar vein, core inflation rose to 21.84 percent, 0.69 percent, and 4.35 percent in August 2023 and September 2022, respectively, from 21.15 percent and 17.49 percent in those same months.”
“When it came to item contributions, the data showed that food and non-alcoholic beverages led the pack, accounting for 13.84 percent of the price increase. This was followed by housing water, electricity, gas, and other fuel (4.47%), clothing and footwear (2.04%), transportation (1.74%), and furnishings and household equipment and maintenance (1.34%),” according to NBS.
Almona expressed regret for the dire situation and stated that they expect businesses to adopt various cost-reduction strategies in the near future, such as downsizing and sourcing inputs locally, in an attempt to reduce operating expenses. They also anticipate that economic policymakers will prioritize inflation.
She went on to say that the chamber advises the government to concentrate its efforts on increasing supply as opposed to a decrease in demand.
Additionally, Alumona pleaded with the government to resolve the issues impeding home production and removing obstacles to the nation’s internal goods distribution network.
In order to increase the nation’s food supply, we further implore the administration to keep addressing the issues of insecurity and other elements influencing agricultural output. Lastly, she stated, “LCCI impels the CBN to enhance the credit flow to the actual economy.”
