The Governor of the Central Bank of Nigeria, Olayemi Cardoso, expects headline inflation to fall to 21.4 per cent in 2024.
This was disclosed by the apex banks’s governor during his keynote speech at the launching of the Nigerian Economic Summit Group macroeconomic outlook report for 2024.
He said, “Inflationary pressures are expected to decline in 2024 due to the CBN’s inflation-targeting policy, which aims to rein in inflation to 21.4 per cent.”
By the end of 2023, the rate of inflation had increased from 21.34 percent at the end of 2022 to 28.92 percent, a 7.58 percentage point rise.
According to him, the inflation targeting will help the government in its battle against inflation which hit 28.9 per cent in December. Lower rates will ultimately affect businesses, he alluded.
“The outlook for decreasing inflation in 2024 will have a profound impact on businesses, providing a more predictable cost environment and potentially leading to lower policy rates, stimulating investment, fueling growth, and creating job opportunities,” Cardoso said.
“A key component in the economic equation is the anticipated moderation in Premium Motor Spirit (PMS) pump prices due to the expected operational status of the country’s major government and privately owned refineries in 2024,” he stated.
Fuel prices are predicted to stabilize or decline, which will have a substantial impact on many different industries and increase overall economic resilience and efficiency.