LCCI raises concern about inflation crisis, charges CBN on new approach

The Lagos of Commerce and Industry (LCCI) has expressed concern over the continued uptick in inflation as made known by the National Bureau of Statistics (NBS) consumer price index (CPI) reading last week.

Director General, LCCI, Dr Chinyere Almona, said aside from the dire consequences on Nigerians, the high inflation offers investment disincentives to businesses, squeezes consumers’ income as well as constraints productivity.

The November CPI data released revealed that inflation continued its upward trend, rising to 28.2 per cent from 27.33 per cent in the previous month, implying a 0.87 percentage point increase and 6.73 per cent points when compared to 21.47 per cent recorded in the corresponding month of last year.

Monthly, the upward trend in consumer prices rose to 2.09 per cent in November, having slightly moderated in October to 1.73 per cent.

“The upsurge in inflation is the highest since August 2005 and reflects continued naira depreciation, higher fuel and food prices. The food inflation rate increased to 32.84 percent last month, implying 1.32 percentage point increase from 31.52 per cent in the previous month and 8.72 per cent points increase compared to 24.13 per cent in the corresponding month of the previous year. Core inflation, on the other hand, declined by 0.19 per cent points to 22.38 per cent from the previous month, however, increased by 4.39 per cent points when compared to 17.99 per cent in the corresponding month in 2022,” she said.

In terms of contributions of items, Almona said available data showed that food and non-alcoholic beverages remained the highest contributor to the price increase at 14.61 per cent followed by housing. Water, electricity, gas and other fuels were 4.72 per cent, clothing and footwear was 2.16 per cent while transport stood at 1.84 per cent.

The LCCI boss said: “Following eleven consecutive months of acceleration, the battle against inflation must be intensified by the Central Bank of Nigeria (CBN). We anticipate economic agents, including households and businesses, to continue to deploy strategies that will mitigate inflationary pressures.

“CBN is responsible for formulating and implementing monetary policies that foster currency stability, and this involves a delicate balance between managing inflation, ensuring a competitive exchange rate, and promoting economic growth. Therefore, the CBN needs to adopt a well-calibrated policy mix that addresses the unique challenges facing the Nigerian economy.”

She added that by promoting economic diversification, implementing effective interest rate policies, managing the exchange rate judiciously and embracing inflation targeting, the CBN can contribute significantly to ensuring the stability of the Naira and fostering a robust and resilient economy.