The exiting Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Muda Yusuf, said that rising inflation hurts investment and the welfare of “the people”.
He said this in an interview with the news agency of Nigeria (NAN) on Sunday in Lagos.
In a recent report, the National Bureau of Statistics (NBS) disclosed that the country’s headline inflation reduced by 0.18 percent between the months of May and June.
Inflation in the month of June stood at 17.75 percent against the 17.93 percent recorded in May.
Muda said, “Headline inflation of 17.75 percent is still a reflection of intense and persistent inflationary pressure on the Nigerian economy.
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“Even more worrisome is the incessant high food inflation, which was 21.83 percent in June.
“High inflation is (sic) hurts investment, it is injurious to the welfare of the people and detrimental to the economy.
“The main factors that have disrupted output in the economy are also heightened insecurity, exclusion of some critical industries from the official foreign exchange window, trade policy issues, among others.
“The infusion of this financing typically increases money supply and aggravates inflation.
“It is high-powered money and also characterised as inflation tax.
“Reports of interest payments of over 480 billion naira on ways and means financing by the apex bank between January and May 2021 is quite instructive.”
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