There are indications that cost of living will remain high in the near term as money supply and currency in circulation (CIC) surge simultaneously to all-time high in the economy. According to them, Nigeria’s inflation may worsen as the country’s money supply (M3), which measures the total amount of money in an economy, reached an all-time high of N101.34 million in June 2024. According to financial analysts, when the money supply increases, it can lead to higher inflation. While the increase in CIC may suggest improved economic activity in nominal terms and higher consumer spending, it also highlights inflation risk, particularly if money supply growth exceeds real output growth. In contrast, the North-West Zone reported the lowest average CoHD at N956 per day, compared to N787 in May.

Source: Nigerian Tribune August 05, 2024 08:31 UTC