According to the International Monetary Fund (IMF), Nigeria’s inflation rate is expected to decrease to 23% by the year 2025, down from the recorded 33.2% in March 2024.
During the Global Economic Outlook presentation at the International Monetary Fund/World Bank Spring Meetings on Tuesday, the Washington-based institution shared this forecast.
Daniel Leigh, the Division Chief of the IMF Research Department, attributed the surge in Nigeria’s inflation rate in March to the impact of economic reforms in the country, including two exchange rate adjustments.
He also mentioned that Nigeria’s economic growth is projected to increase from 2.9% last year to 3.3% by 2024.
“The rise in inflation is a result of the reforms, exchange rate adjustments, and the subsequent effects on imported goods and other commodities,” Leigh explained.
Looking ahead, he stated, “We anticipate a decline in inflation to 23% next year, followed by a further decrease to 18% in 2026.”
Recent data from the National Bureau of Statistics revealed a significant rise in food inflation to 40.01% in March.