Some persons are really thinking that the effect of the new petrol pump price they are seeing is all they would see.
Well, if you fall in that category, there is a lot of deep thinking you need to do.
You see, since the proclamation of President Bola Tinubu on petrol subsidy, the rise in the cost of living in Nigeria is visible, even to the blind.
Petrol stations raised the price of petrol to over 500 Naira and that has also reflected in the cost of transportation.
While you may be praying and hoping that the entire thing will change, there appears to be tougher days ahead.
Projections are coming in, giving better insight into what the coming days or weeks may mean to Nigerians in terms of the prices of their favourite goods and services.
At the KPMG Nigeria, an economist, Yemi Kale, is reeling out what prices of goods will look like in this month of June.
Rise In Price Of Goods And Services
Kale is projecting that the inflation rate in Nigeria may rise to around 30% in June, the highest since 1997.
The economist believes that the new price of petrol will add about 6% to the inflation rate in Nigeria.
He expressed this view via his Twitter handle.
According to Kale the consumer price index (CPI) rose to 22.22% in April.
The change in the CPI rate is the fourth consecutive rise in the nation’s inflation figure for this year alone.
Also, the former statistician-general of the National Bureau of Statistics (NBS) explains that the CPI for May would not change so much.
“Using the NBS CPI model+my macro model, the new PMS prices may add about 6% to CPI in June over whatever is reported in May, holding other things constant,” he tweeted.
“April was 22.22% and May is unknown and won’t be affected. So, June will be somewhere about 30%.
“Not as bad as I expected.”
New Price Of Commodities
Basically, what this means is that you should work-in a 6% increase into the price of any goods you use to buy.
Also Read: Dangote Refinery Won’t Solve Nigeria’s Petrol Problem -Olukwu
For instance, if you buy a product for 500 Naira before, the new price will be 500 + 6%. This will be 500×6/100. The new price will be about 530 Naira.
However, being that there is no price control in Nigeria and that smaller denominations are scare, there could be a round-figure of 550 or 600 Naira price for goods you use to buy 500 Naira.
This rise is as a result of the new petrol pump price.
Indeed, it that is what the price of goods could come to this June, as a result of subsidy removal, it is not as bad as expected.
WHAT WHY INFLATION WILL CONTINUE TO GO UP
