The Lagos Chamber of Commerce and Industry has warned that the recent sustained rise in the general price level has caused some deterioration in purchasing power.
In a statement signed by its Director-General, Chinyere Almona, the chamber said rising inflation had worsened Nigerians’ plight, particularly at a time when multidimensional poverty had reached an all-time high, with an unprecedented 133 million Nigerians living below the poverty line.
According to the LCCI, while the monetary authority continues to raise rates to combat inflation, the supply side should be investigated with the same zeal.
It stated that other monetary and fiscal policies should be used in tandem to control inflation.
“The sustained rise in the general price level in recent times has caused some weakening in purchasing power,” the statement said in part. This comes at a time when multidimensional poverty has reached an all-time high, with an unprecedented 133 million Nigerians living in poverty (NBS).
The impact of rising inflation is far-reaching. It distorts fixed interest rate payments for recipients and payers alike, leaving in its trail disruptions and dislocations in the economy.
The CBN should also examine the extent of its monetary financing of the Federal Government through various means, according to the statement.
According to the National Bureau of Statistics, headline inflation rose by 0.47 percentage points to 21.83 percent in January 2023, after falling by a few basis points in December 2022.
Source: PUNCH
