- Inflation around the world is causing massive shocks around the world, especially in Africa where it has hit over 200 per cent in some countries
- Currently, Nigeria’s inflation rate stands at 18.6 per cent but is far from being the worst in Africa
- Analysts have blamed the current inflation on the ongoing war in Ukraine which has caused a hike in energy costs around the world
Currently, the world is facing massive inflationary figures which many say are caused by ongoing Russia’s invasion of Ukraine.
The rise in inflation has been blamed on the surging rising energy costs which have seen the cost of commodities surge since February the war in Ukraine began.
African countries in limbo
The worst hit is less economically developed countries, especially in Africa.
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As of January 2022, Nigeria’s inflation stood at 15.60 per cent and has risen month on month to stand at 18.6 per cent.
The International Monetary Fund (IMF) has projected that the current inflationary trend will continue way into 2023, forecasting that inflation for developing economies will stand at 5.7 per cent and developing markets at 8.7 per cent.
This has caused countries around the world to raise their interest rates and adjust their monetary policies to suit the challenging times.
Nigeria one of the worst hit
Nigeria raised its interest rate to 14 per cent in July 2022, to cushion the effect of the biting inflation.
According to Nairametrics, The IMF stated that central banks from each country must take steps to suppress inflation until it is clear where it is heading.
The reviews by African central banks will continue to be around surging food inflation, fertilizer and energy costs which are caused by supply shortages due to the ongoing war in Ukraine.
How inflation affects you
The erosion of incomes in Africa means that individuals now have to double efforts in order to meet up the escalating inflation.
Year-on-year inflation means that individuals buy goods at the percentage of inflation figures prevalent in their countries.
The list of African countries with the worst inflation is:
Sudan: 220.7 per cent (April 2022
Zimbabwe: 191 per cent (June 2022)
Ghana: 29.8 per cent (June 2022)
Nigeria: 18.6 per cent (June 2022)
Rwanda: 16.1 per cent (June 2022)
Egypt. 13.2 per cent (June 2022)
Botswana: 12.7 per cent (2022)
Kenya: 7.9 per cent (June 2022)
South Africa 6.5 per cent (May 2022)
Nigeria moves a step higher in World Bank’s ranking of African countries with highest per capita
Legit.ng reported that the World Bank says Nigerians got richer in 2021 as their Gross National Income per capita surged by 5 per cent to about $5,250 per capita in 2021 in comparison to the same period of $5,000 in 2020.
Gross National Income is the total income earned by a country’s people and businesses, including economic aid and investment income, irrespective of where it was earned.
According to Nairametrics, it includes income earned from investments overseas by residents of a country, like those living in Nigeria but making overseas income.