Piqued by the running inflation in the country, the Central Bank of Nigeria has concluded arrangement to unveil a new price management and stability framework.
The framework which is been worked upon by both the apex bank and the ministry of finance is expected to lead to improvement in average living standards.
The inflation management plan was revealed by CBN Governor Olayemi Cardoso at the weekend.
Food inflation stuck to an 18-year high at 31.52 per cent.
Rising inflation, underlined by continuing increases in costs of basic foods, logistics, energy and other living items, has undermined Nigerians’ living conditions and led to the depletion of savings and investments.
Spiralling inflation has posed a major challenge to global economic growth.
Widespread tightening of monetary policy, aimed at curbing inflation, has restrained economic activity and suppressed growth.
According to the International Monetary Fund (IMF), global growth is projected to slow from 3.5 per cent in 2022 to 3.0 per cent this year and 2.9 per cent next year, well below the historical average of 3.8 per cent achieved between 2000 and 2019.
Advanced economies are expected to experience a slowdown from 2.6 per cent last year to 1.5 per cent this year and 1.4 per cent next year as the impact of policy tightening takes hold.
Cardoso said the apex bank was revising the inflation-management framework to address the challenges of rising and unstable prices and foster stable and sustainable economic growth.
He said the CBN was well aware of the damage inflation has caused to living conditions and businesses, assuring that the new inflation-targeting framework would be effective in anchoring the apex bank’s agenda of price stability.
“As part of this refocus, the CBN has just approved the adoption of an explicit inflation-targeting framework to enhance the effectiveness of our monetary policy.
“The details and requirements for this framework are currently being finalised alongside the fiscal authorities,” Cardoso said during his lecture at the Chartered Institute of Bankers of Nigeria (CIBN) annual dinner in Lagos.
He recalled that he recently met with a group of small business owners and individuals who expressed their concerns about the impact of inflation on their operations and living conditions.
The CBN governor said: “They shared stories of struggling to maintain affordable prices for their customers while facing rising costs for raw materials and supplies.
“The instability caused by inflation not only affects their profit margins but also hampers their ability to plan for the future.
“These entrepreneurs stressed the need for price stability to create a conducive business environment that allows them to thrive and contribute to the economy.
“In recent discussions with individuals from different walks of life, I encountered a young family trying to make ends meet in the face of rising prices.
