Dr.Muda Yussuf,the Chief Executive Officer of Centre for the Private Enterprise,CPPE,has advocated the need for cautious celebration of Nigeria’s reduction in inflation to 24.48% in January 2025
In a statement on Tuesday,Yusuf clarified that a drastic reduction in inflation figures is not tantamount to a reduction in price level.
He explained that inflation reduction simply means a reduction in the rate of increase in the general price level, not a reduction in price.
He said the reality of high prices has not changed and remains a major factor in the cost of doing business, cost of living and poverty equation in the country.
He added:” Households and firms are still concerned about high energy costs, the strength of the naira, high interest rate, cost of imports, transportation costs and insecurity. It is hoped that the government will recalibrate its strategies to address these major cost drivers.
“What businesses and households desire at this time is a reduction in the general price level from the incredibly high levels in 2024 to a substantial moderation in 2025, which is defined in technical parlance as disinflation.
“The good news, however, is that we are beginning to see indications of such reductions in PMS, diesel, some food items and pharmaceutical products. It is hoped that this trajectory will be sustained in the course of the year”.
