Analysts at FocusEconomics have said that the fuel subsidy removal fallout and the devaluation of the naira will fan inflationary flames through the second half of 2023.
They stated this in their Consensus Forecast report for September 2023.
According to the analysts, inflation (24.08%) has exceeded market expectations, surging to nearly a two-decade high of 24.1% in July, driven by the removal of the fuel subsidy in May and the significant depreciation of the naira’s value. So, these factors are expected to sustain inflationary pressures throughout the second half of 2023.