The Managing Director of Financial Derivatives Company Limited, Bismarck Rewane, has said the recent rise in the price of petrol may cause an increase in Nigeria’s inflation rate from 23.18%.
Rewane stated this on Channels Television’s Business Morning show on Tuesday.
“There might be an increase in the rate of inflation because of the increase in the price of petrol but we haven’t seen the corresponding increase in the prices of transport fares so far.
“What we’ve seen in the last few days is that food commodity prices have increased, coupled with the fact that the planting season is here,” he said.
The economist said uncertainties and the fears of recession have become very palpable with the imposition of tariffs on imported products to the United States by the Donald Trump presidency.
According to him, the prices of gold and crude oil have been impacted by the tariff war started by the Trump presidency.
“The United States has disrupted things with its policy initiatives. The United States, I think, will reverse some of those decisions when they begin to impact everybody. We are in a political system. 2026 is going to be mid-term elections and I think the United States is going to begin to retrace some of its steps,” he added.
The economist, however, warned against panic, saying the volatility would be for a short while.
