IMF Predicts 13.5% Inflation for Nigeria in 2019

Kunle Aderinokun and Obinna Chima in Bali, Indonesia

The International Monetary Fund (IMF) has predicted that inflation rate in Nigeria will rise to 13.5 per cent in 2019.

The Counsellor and Director of the Research Department, IMF, Maurice Obstfeld, stated this on Tuesday, during the unveiling of the fund’s World Economic Outlook (WEO), at the ongoing annual meetings of the IMF/World Bank, in Bali, Indonesia.

Inflation in the country climbed to 11.23 per cent in August, higher than the 11.14 per cent recorded in July.

However, inflation in Nigeria was estimated to fall to 12.4 percent in 2018, from 16.5 percent in 2017.

“Inflation pressures in sub-Saharan Africa have broadly softened, with annual inflation projected to drop to 8.6 per cent in 2018 and 8.5 per cent in 2019, from 11 per cent in 2017.

“In South Africa, inflation has moderated to 4.8 per cent in 2018 from 5.3 per cent in 2017 with the easing of drought conditions, but is expected to edge back to 5.3 per cent in 2019 as temporary disinflationary effects subside.

“In Nigeria and Angola, tighter monetary policy and moderation in food price increases contributed to tapering inflation.

“In Angola, inflation is projected to fall to 20.5 per cent in 2018 from 29.8 per cent in 2017 and to decline further to 15.8 per cent in 2019,” the IMF stated in the WEO.