Nigeria Listed Among Top 10 Countries With Worst Inflation Rate By World Bank

Inflation in economic terms refers to the rate at which the general prices of goods and services rise incessantly in a given country. As inflation continues to dominate the global economy, global inflationary pressures have increased in Q2 2022, following the impact of the Russian-Ukraine war.

The world bank recently published a list of the top 10 countries with the worst inflation rate, with Nigeria occupying the 8th position with an annual inflation rate of 16.95%. The list was topped by the Republic of Sudan, having an inflation rate of 382.82%.

Check out the list of Top 10 countries with the worst inflation rate published by the World Bank

1.) Sudan – 382.82%

• The Republic of Sudan recorded the worst inflation rate in the world in 2021 with 382.82%, a multiple of the 150.32% recorded in the previous year.
• Sudan’s inflation rate has decreased to 220.7% in April 2022 from 263.2% recorded in March 2022.

2.) Lebanon – 154.76%

• Lebanon’s inflation rate almost doubled to 154.8% in 2021 from 84.86% recorded in 2020.
• Lebanon’s annual inflation rate increased to a three-month high of 211.43% in May 2022 from April’s five-month low of 206.24%, pointing to the highest level since February,

3.) Zimbabwe – 98.55%

• Zimbabwe’s inflation rate trickled down to 98.55% from 557.2% recorded in the previous year.
• It is worth noting that Zimbabwe’s inflation rate increased to 191.6% in June 2020, to its highest rate in over one year.

4.)Suriname – 59.11%

• Suriname, a small country on the north-eastern coast of South America, had Its inflation rate jump significantly to 59.11% in 2021 from 34.89% recorded in 2020.
• On a positive note, the inflation rate in Suriname decreased to 59.8% in April 2022 from 62.2%recorded in the previous month.

5.) Ethiopia – 26.83%

• Ethiopia’s annual inflation rate rose to 26.84% in 2021 from 20.36% recorded in the preceding year.
• According to AfDB, the GDP growth of Ethiopia is projected to fall to 4.8% in 2022 but pick up to 5.7% in 2023, driven by industry and by private consumption and investment.
• The annual inflation rate in Ethiopia eased for the first time in four months to 34% in June of 2022, from 37.7% recorded in the previous month.

6.) Zambia – 22.02%

• Zambia recorded an inflation rate of 22.02% in 2021, a significant increase compared to 15.73% recorded in the previous year.
• Meanwhile, Zambia’s annual inflation rate decelerated for the 11th straight month to 9.7% in June of 2022, from 10.2% in the previous month.

7.) Turkey – 19.59%

• Turkey saw its inflation rate climb to 19.59% in 2021 from 12.28% recorded in 2020.
• Meanwhile, the inflation rate of Turkey accelerated for the 13th consecutive month to 78.62% in June of 2022, the highest since September 1998.

8.) Nigeria – 16.95%

• Nigeria’s inflation rate increased to 16.95% in 2021, from 13.25% recorded in the previous year. Nigeria is the most populous country on the African continent and the largest economy on the continent.
• Nigeria’s inflation rate accelerated to 17.71% in May 2022 from 16.82% recorded in the previous month. The National Bureau of Statistics (NBS) is set to release the inflation figures for June 2022 on Friday, 15th July 2022.

9.) Haiti – 16.84%

• Its annual inflation rate stood at 16.84% in 2021, a significant decline compared to 22.79% recorded in the previous year.
• Although Haiti’s economy was contracting and facing significant fiscal imbalances before the COVID-19 pandemic, its impacts triggered an even greater economic downturn. In 2020, GDP contracted 3.3% and is estimated to have contracted by 1.8% in 2021.
• Haiti’s inflation rate climbed further in February 2022 to 25.17%, from 23.95% recorded in January.

10.)  Guinea – 12.59%

• The inflation rate of Guinea rose to 12.59% in 2021, from 10.6% recorded in the previous year. This is also the highest inflation rate recorded by the country since 2012 when its inflation rate topped 15.2%.
• Meanwhile, recent data shows that Guinea’s inflation rate dropped to 10.99% in April 2022.

From the list above, it is obvious that the African region remains the worst hit, with six of them occupying the world bank list of countries with the worst inflation rate. According to the world bank, the global inflation rate, measured by the consumer price index rose to 3.42% in 2021 from 1.92% recorded in the previous year, hitting the highest level in nine years.

Recall that earlier this month, the world bank stated that the federal government of Nigeria’s response to inflation is inadequate as the country continues to suffers double-digit inflation.

It disclosed that Nigeria’s inflation rate is pushing 7 million Nigerians into poverty, food insecurity, and fueling criminality in the country. The World Bank added that the number of poor Nigerians is projected to hit 95.1 million in 2022, warning that many non-poor Nigerians were only one small shock away from falling into poverty.

It also cited negligence on the part of the Nigerian government, stating that despite the inflation shock pushing millions of Nigerians into poverty, the government continues to put a lackluster attitude without any concerted action towards curbing the inflation.

Although the Central Bank of Nigeria has taken a step to unify the official exchange rate, unfortunately, the exchange rate is not yet reflective of the market forces. The world bank, therefore, urged the CBN to aim for greater flexibility by re-establishing a dollar inter-bank market, also allowing banks to trade currency on their behalf to increase liquidity and move towards a single rate.

It warned that if serious measures are not put in place to curb the inflation rate, Nigeria might have one of the highest inflation rates globally. As inflation continues to ravage the global economy, global inflation has been forecasted to reach 7.9% in 2022, and 5.0% in 2023.

Countries with greater dependency have been predicted to feel higher inflationary effects in 2022. Russia’s invasion of Ukraine has been attributed as the main factor contributing to higher inflammatory pressures.

Higher volatility in commodities, Transportation problems, and supply disruptions have no doubt disrupted global supply chains which also inflated input prices.