• Saturday, June 15, 2024
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Nigeria’s Inflation hits ceiling, to fall marginally


Nigeria’s rate of inflation may have hit the ceiling and is expected to trend downwards and not up according to forecast by analysts at Financial Derivatives in Lagos.

In a report Thursday, the analysts said  “after an almost unstoppable rise in headline inflation to a record high, the economy may be entering an era of disinflation or declining rates of inflation. We are projecting inflation in June dropping from 15.6% to 15.5%.”

The analysts said if this estimate turns out to be accurate, it will raise some fundamental questions as to the direction of inflation and possible level of interest rates in the money markets.

The traced the root cause of the near hyper inflation rate to “supply shocks at times attributable to artificial scarcity compounded by uncertainty in the forex markets.”