*Economy and financial experts offer top, practical tips on how to cope with the apparently high inflation in Nigeria, and several other economies, as the cost of living keeps increasing at a faster rate, making it harder for millions of consumers across the world to afford necessities of life, including food, housing and healthcare

Isola Moses | 绿帽献妻

It is an indisputable fact that Nigeria and several other economies aroundg the world have been grappling with high inflation rates in recent times.

绿帽献妻 reports the inflation rate in the West African country, for instance, has reached as high as 25.80 percent as the Consumer Price Index (CPI) also increased to 593.60 points as of August 2023, according to National Bureau of Statistics (NBS).

As Nigeria inflation August this year hit annual inflation rate accelerated to an 18-year high of 25.80 percent, Africa’s largest economy had grappled with rising prices ahead of a Central Bank of Nigeria (CBN) interest rate decision in September.

The August inflation figure rose for an eighth straight month from July’s 24.08 percent, according to NBS, compounding a cost of living crisis worsened by Tinubu’s reforms.

The situation was said to have resulted from President Bola Ahmed Tinubu, May 2023, in Abuja, FCT, when he announced the removal of a popular but costly decades-old petrol subsidy and ended exchange controls, leading to a spike in prices from food to transport fares and angering Labour unions who have threatened strikes.

The last time Nigerian consumers experienced this level of inflation was in August 2005, official data showed.

Commenting on the development, Razia Khan, Standard Chartered, Managing Director and Chief Economist, Africa and Middle East, said: “Nigerian inflation rose faster than expected in August, a month that more typically sees seasonally subdued inflation pressures,” reports Reuters.

This development has had a devastating impact on the Nigerian economy and the consumers, who are trying to make ends meet in the West African country’s economy.

What is inflation?

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

High inflation also means that the cost of living is increasing at a faster rate, making it harder for people to afford necessities, such as food, housing and healthcare.

Post-subsidy removal palliatives and Nigerian economy

It has been said that a possible way to combat inflation is to increase wages as the Federal Government has done for its Civil Servants recently, but when it鈥檚 not forthcoming, follow these suggestions to manage the impacts, courtesy of Advans La Fayette Microfinance Bank.

Save money on transportation
It the ever-increasing fuel prices in Nigeria are blowing up your budget, your first course of action could be limiting your driving as much as possible.

Running errands in batches, carpooling or using public transportation, or walking anywhere within a short distance can also save you substantial money at the end of the month.

Buy your food in bulk

A typical Nigerian spends up to half of his/her income on food, so lots of money can be saved if you can cut expenses in this regard.

Make sure you pay attention to the prices of goods and choose the family-size package, if it is cheaper per unit.

For example, church members and staff of organisations can pool their funds together towards making a bulk purchase.

Afterwards, the food will be divided according to the contributions made.

Eat out less

Studies have shown that it is cheaper to prepare your meal at home than to eat outside. The amount spent on eating a meal in a standard restaurant will be enough to prepare quality 3 square meals at home. Take a break from takeaway and restaurant meals and you will be surprised at how much you will be able to save in a month.

Negotiate lower prices

You can reduce everyday expenses by negotiating over the price of goods or services until a mutually agreed-upon price has been determined.

Getting goods and services at lower rates each time will have an impact on the general monthly expenses.

Postpone non-immediate needs

Not everything will always be more expensive.

Some price hikes could be temporary, and, in that case, it may pay to hold out as the price might go down later.

Purchases that are not immediately necessary can be deferred and you might be able to get a better deal at a later date.

Earn money on your savings

When inflation happens, there is a fall in the value of money generally because of a sudden increase in the price of commodities.

Putting your money in a high-interest yield savings account where it will earn higher interest can reduce the eroding effects of inflation.

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