Nigeria’s headline inflation rate has been tipped to hit 30% by December 2023, global financial advisory service firm, Klynveld Peat Marwick Goerdeler (KPMG) has predicted.
KPMG in its macroeconomic review for the first half of 2023 and outlook for the year’s second half (H2) noted that recent reforms in the petroleum industry (like the fuel subsidy removal) and unification of the foreign exchange market will be responsible for the projected spike in prices of goods and services.
The report reads, “We anticipate that the current inflationary pressure in the economy will persist into H2 2023… Specifically, our model suggests that the combined influence of fuel subsidy removal and foreign exchange liberalisation may drive headline inflation to about 30% by December 2023.”
