The Lagos Chamber of Commerce and Industry (LCCI) has called on the federal government to implement targeted interventions to address inflationary pressures and improve economic stability.

Director General of LCCI, Chinyere Almona who made this call while responding to the nation’s new inflation rate said while the rebased inflation rate provides policymakers with a clearer view of economic trends, it does not resolve the rising cost of living. 

She said policies should focus on boosting agricultural productivity, reducing post-harvest losses, and improving transportation and storage infrastructure to ensure food affordability. 

She said stabilising the exchange rate is crucial, as naira devaluation has been a major driver of inflation. 

The LCCI, however, said that encouraging local production and reducing reliance on imports can help strengthen the currency and control price surges.

She said fiscal discipline is also essential, as excessive government borrowing and deficit spending contribute to inflation. 

Speaking further she said reducing unnecessary expenditures while prioritising infrastructure and social investments can help manage inflationary pressures while the Central Bank of Nigeria (CBN) must carefully adjust monetary policies, ensuring interest rate decisions strike a balance between controlling inflation and sustaining economic growth.

She stated that a lower inflation rate may seem positive, but it does not automatically improve living standards, adding that prices are still rising, wages remain stagnant, and unemployment is high, keeping real incomes under pressure. 

Almona pointed out that the rebased inflation rate only reflects a different measurement, not an actual drop in prices, insisting that for most Nigerians, essential costs like food and transportation remain high, meaning living conditions will not improve unless there is a real reduction in the cost of necessities.

She said the sharp drop in the inflation rate from 34.8 per cent to 24.48 per cent is primarily due to the rebasing of the Consumer Price Index (CPI) rather than a real reduction in price levels. 

She stated that Rebasing typically updates the weight of different goods and services in the inflation basket to better reflect current consumption patterns.

According to her, “the drop in inflation from 34.8 per cent to 24.48 per cent is due to a change in measurement rather than a real decline in prices. The previous method likely overemphasized food inflation, while the new approach incorporates updated economic data and adjusted weightings. “

This difference according to her ” does not indicate a sharp fall in prices but a revised way of calculating inflation. Despite the lower reported rate, inflation remains high, meaning prices are still rising, just at a slower pace.