Inflation to remain high in Nigeria next year – International Monetary Fund

The International Monetary Fund has said it expects inflation in Nigeria and Angola to remain elevated at two-digit levels next year.

The IMF said this would reflect the persistent effects of past inflationary shocks coming from sharp currency depreciation as well as higher electricity and fuel prices and, “in the case of Nigeria, reflecting the assumption that monetary policy will remain accommodating going forward.”

according to the National Bureau of Statistics Inflation in Nigeria dropped marginally from 16.1 per cent in June to 16.05 per cent in July, the sixth consecutive decline in the rate since January 2017,.

The fund said on Tuesday that it, however, expected sub-Saharan Africa, where growth in per capita incomes had on the average stalled for the past two years, to improve overall in 2018.

It noted that the latest World Economic Outlook report had upgraded its global growth projections to 3.6 per cent for this year and 3.7 per cent for next year, well above 2016’s global growth rate of 3.2 per cent, which was the lowest since the global financial crisis.

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