The Lagos Chamber of Commerce and Industry (LCCI) has made an earnest appeal to the Central Bank of Nigeria (CBN) to suspend its current interest rate hike. This call comes in response to the mounting pressure on the supply side due to an escalating inflation rate.
According to recent Consumer Price Index (CPI) data released by the National Bureau of Statistics (NBS), the year-on-year inflation rate surged to 25.80 percent in August, up from 24.08 percent in July. This indicates eight consecutive months of inflation increase, marking the highest level since September 2005.
Dr. Chinyere Almona, Director of the LCCI, expressed deep concern about this upward trajectory in year-on-year inflation, primarily driven by significant increases in both the food and core components of the CPI. However, Dr. Almona pointed out that the slower pace of month-on-month headline inflation might signify uncertainty in the short-term price movement.
In light of these developments, the LCCI foresees that businesses will need to implement diverse cost-cutting strategies. These may include downsizing and sourcing input materials locally as a means to reduce operational expenses.
