The Chief Executive Officer of Financial Derivatives, Mr Bismarck Rewane, has forecasted a decline in the nation’s inflation and food price hikes from July to August 2024.
Mr. Rewane’s prediction comes after Nigeria experienced its 17th consecutive month of inflation increase in May, with headline inflation reaching 33.95 percent and food inflation hitting 40.66 percent.
In a recent interview, he highlighted that the inflation surge, which has been ongoing since December 2022, is expected to ease in the coming months.
He expressed optimism about Nigeria’s economic outlook, stating that there is a “flicker of light at the end of the tunnel.”
According to him, following the recent inflation data from the National Bureau of Statistics (NBS), the picture showed that the rate of increase in price level has begun to slow. Hence there are projections that inflation will begin to decline from July to August.
He attributed the anticipated moderation in inflation to the Central Bank of Nigeria’s (CBN) aggressive management of money supply growth and more efficient management of crude oil revenue. These measures, according to him, are crucial in controlling inflation and stabilising the economy.
“Given our take depending on how the minimum wage is handled, there will be a decline in inflation from July to August, not drastically though. Don’t forget it has been the 17th consecutive month of inflation,” he noted.
Mr. Rewane stressed the importance of the CBN’s role in curbing money supply growth as a key factor in mitigating inflation. He also emphasised the need for improved management of oil revenue to further bolster economic stability.
“How will it happen? Of course, the CBN has to continue to get a code of money supply growth. If that happens aggressively and we begin to see the management of oil revenue much more efficiently, we will improve inflation,” he stated.
Looking ahead, Mr. Rewane assured that the current economic difficulties are nearing an end, and brighter days are on the horizon. “Generally speaking, the dark days are coming to an end and a few bright lights will start coming as we go into the end of the year,” he further said.
This optimistic outlook offers hope to Nigerians grappling with high inflation and food prices, suggesting that relief may soon be on the way as economic policies take effect.
