The Lagos State Chamber of Commerce and Industry (LCCI) has urged government to implement fiscal measures of reducing or removing taxes on staple food items to protect the most vulnerable from inflationary pressures.
Chinyere Almona, Director General, LCCI, said this while reacting to the National Bureau of Statistics (NBS) April 2023 inflation rate of 22.22 per cent via a statement on Tuesday in Lagos.
Almona said the advice which was important to supplement the consistent monetary policy rate hike would also spur demand side growth.
She noted that the data from the bureau has indicated that food and non-alcoholic beverages, housing, water, electricity, gas and other fuel, clothing & footwear and transport were the major critical components of human existence.
“The chamber notes that since February 2016 to date, the country has recorded a double-digit monthly inflation rate, with an adverse effect on the size of its middle class.
“Furthermore, the inflation rate of 22.22 per cent is the highest in about 17 years, with significant and worrisome impacts on both the household and business sectors.
“Apart from eroding purchasing power, it has led to inventory stockpiles.
“If left unchecked, the high inflation may further constrained production, lead to rise in poverty index, frustrate economic growth.
This trend could also lead to high unemployment and non-competitive exports, especially in the sub-region,” she said.
