Despite the rebased inflation rate dropping to 24.48%, many Nigerians still struggle with high living costs.
The change reflects a new calculation method rather than a real drop in prices.
With food and transport expenses still rising, the Lagos Chamber of Commerce and Industry (LCCI) calls for targeted policies to curb inflation, stabilise the exchange rate, and boost local production.
Majorly, rebasing updates how statisticians weigh goods and services in the inflation basket to reflect current consumption patterns.
However, LCCI stresses that this method does not improve living conditions.
“Businesses continue to raise prices, wages remain stagnant, and high unemployment keeps real incomes under pressure,” the chamber stated.
For most Nigerians, essentials like food and transport still demand a significant portion of their income, meaning the rebased inflation rate does not ease financial strain.
Although policymakers now have clearer economic data, they must take further action to resolve the cost-of-living crisis.
Tackling Inflation At Its Root
To address inflation effectively, LCCI urges the government to prioritise food security since rising food prices account for over 50% of overall inflation.
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Policymakers should focus on boosting agricultural productivity, reducing post-harvest losses, and improving transport and storage infrastructure to lower food costs.
Moreover, the chamber highlights how naira devaluation worsens inflation.
Therefore, the government must stabilise the currency by encouraging local production and reducing import dependency.
Additionally, authorities must practise fiscal discipline, limiting excessive borrowing and deficit spending.
Striking A Balance
At the same time, LCCI calls on the Central Bank of Nigeria (CBN) to carefully adjust interest rates, ensuring they control inflation without stifling growth.
Without real economic reforms, inflation will continue to burden Nigerians, regardless of how it is measured.
