Experts list ways to bring down inflation

Some economics experts have said that increased implementation of fiscal policies designed to boost food production and reduce constraints facing businesses will halt soaring inflation.

These measures, if applied, will reverse the rising cost of goods and services, the experts argued yesterday.

Speaking against the background of the release of the new inflation report, they urged the government to harmonise fiscal and monetary gaps and align all policies towards the stated objective of improved living conditions for the citizenry.

These steps, they said, the government must take not notwithstanding the fact that inflation appeared to be slowing down.

The National Bureau of Statistics (NBS) yesterday released the December 2024 Consumer Price Index (CPI, showing that headline inflation rose by 20 basis points from 34.60 per cent in November 2024 to 34.80 per cent in December 2024.

But food inflation slowed by eight basis points from 39.93 per cent in November to 39.84 per cent in December. The latest inflation rate is generally lower than analysts’ projections and shows a moderation in pace of price increases.

Managing Director, Centre for the Promotion of Private Enterprises (CPPE), Dr. Muda Yusuf, said inflationary pressures have continued to be troubling feature of the Nigerian economy, although the increase in the December headline inflation was marginal when compared with November inflation figures.

Yusuf expressed worry over what he described as “current fixation of the National Assembly on revenue”, which sets arbitrary revenue targets for ministries, departments and agencies (MDAs).

He added: “Excessive pressure on MDAs to boost revenue and increase internally generated revenue (IGR) has profound inflationary implications.

“Reality is that such pressures are invariably transmitted to investors in form of higher fees, levies, penalties, import duties and regulatory charges among others.”

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