Rising Inflation: Commerce Group Warns Poverty is Multiplying

The Lagos Chamber of Commerce and Industry (LCCI) has warned that the sustained rise in the general price level in recent times has caused some weakening in purchasing power.

The chamber, in a statement signed by its Director-General, Chinyere Almona, said the rising inflation had worsened the plight of Nigerians, particularly at a time when multidimensional poverty had climbed too high with an unprecedented 133 million Nigerians living below the poverty line.

According to the LCCI, while the monetary authority keeps hiking rates to beat inflation, the supply side should also be explored with the same vigour.

It said other monetary and fiscal policies should be equally deployed to tame inflation.

The statement partly read, “The sustained rise in the general price level in recent times has caused some weakening in purchasing power. This is coming at a time when multidimensional poverty has climbed too high with an unprecedented 133 million Nigerians living below the poverty line (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 statement added that the CBN should also check the extent of its monetary financing of the Federal Government through ways and means.

According to the National Bureau of Statistics, headline inflation inched up by 0.47 per cent to 21.83 per cent in January 2023 after shading a few basis points in the month of December 2022.