Introduction
Hello, everyone my name is Olubunmi, All these while since I've joined Hive, I've been looking for a Community in which I can freely express myself, I'm so glad to have found and Joined this community, really
I Feel Like I've Found my NICHE!
So today,I'm gonna be talking about something really Devastating titled - RATE OF INFLATION IN NIGERIA
INFLATION
Inflation as we all know, is defined as a Persistent rise in the General price level! In "Lay- man" terms, it is defined as Too much money, chasing fewer goods. During inflation the value of money falls!
There are different types of Inflation, we have;
a) Demand -pull Inflation
b) Cost - push Inflation
c) Open Inflation
A) DEMAND- PULL INFLATION: This type of Inflation emanates from excess of demand over supply. Meaning, The demand for goods and services increases considerably, without a corresponding Increase in supply, Thereby leading to increase in the prices of goods and services
B) COST- PUSH INFLATION: This type of Inflation is generated by Increase in the cost of acquiring factors of Production, like - Land, Labour, Capital and Entrepreneurship
C) OPEN INFLATION: This type of Inflation is generated by an Increase in money supply, without a corresponding Increase in the volume of goods and services, Therefore too much money chases fewer goods resulting in the rise of General price level! It is the Most common type of Inflation
This is the Inflation we are facing presently in Nigeria.
Nigeria for those who haven't been there before is a country in West Africa. It is the Largest economy and Most populous Country in Africa
She Celebrated, her 62nd INDEPENDENCE, yesterday the 1st of October. Nigeria is a Country rich in a lot of mineral resources, forests and wildlife.
INFLATION RATE IN NIGERIA
I know Inflation is a Global trend now as it's affecting a lot of countries due to the Global pandemic, but Nigeria right now is a Country with one of the Highest Inflation rates in the World!
**With an Inflation rate of 18.61% **,as of June, 2022. A lot of money is chasing and purchasing fewer goods and services!
The prices of goods and services have Quadrupled! What you buy today, you won't meet at the same price tomorrow, It is really ALARMING!
To make matters worse, the exchange rate is very high! Exchange rate refers to the price at which a country's currency is in relation to another county's money. So for instance, Relating Dollar 馃挵 to Naira
As at today, 1Dollar = 430 Naira
1 Euro = 420 Naira
1 Pound = 470 Naira
So the exchange rate right now is not favourable to Nigeria, at all because of the Low value of our Naira when compared to foreign currencies.
Due to this fact, Things are expensive because NIGERIA depends on crude oil through international trade
With a lot of increase in prices, people struggle to feed
**I HOPE IT ALL GETS BETTER! **
NIGERIA it is well with You
THANK YOU SO MUCH FOR READING 馃挄