Kelvin Bowoto
In February, Nigerian families’ purchasing power fell further as consumer prices soared, defying the central bank’s recent big interest rate hike.
Headline inflation in February increased to 31.70%, matching audit company KPMG’s forecasts for 2023.
Food inflation also increased dramatically to 37.92%, making essentials such as bread and yam much more expensive for consumers.
“One carton of instant noodles retails at ₦10,000 at wholesale price, over 30% higher than what it began the year with,” claimed Bethel Ibeh, a small culinary shop owner in Ojodu Berger.
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“Only the people that appreciate the value of instant noodles buy them now,” she went on to say.
On February 27, the Central Bank hiked interest rates to 22.75% during its first meeting since 2023. Many saw it as a sign of the bank’s sincerity, and painful but important moves like this are starting to bear fruit.
Last week, the regulator reported that foreign inflows increased to $2.3 billion in February, spurred by renewed interest from foreign investors and an increase in overseas remittances. This amount for the first quarter of 2024 outperformed the $3.9 billion received in 2023.
Techrectory with Agency Report.
