In order to reduce operational costs and sustain profitability in the face of inflationary pressures, firms are expected to employ a number of cost-cutting measures, according to the Lagos Chamber of Commerce and Industry (LCCI).
In response to the 25.80 percent inflation rate for August, Dr. Chinyere Almona, Director-General of LCCI, said this in a statement on Monday.
Remember that the National Bureau of Statistics (NBS) reported an increase in the inflation rate from 24.08% in August, or a 1.720% increase.
Almona claims that downsizing and obtaining input components locally are some of the tactics for staying afloat.
She continued by saying that, particularly in the near future, real income for households would continue to drop.
According to Almona, the LCCI were concerned about the increase in inflation (year over year) brought on by increases in both the food and core components of the CPI.
The modest rate of headline inflation month over month, according to her, can be a sign that the direction of price changes is still uncertain in the near future.
“The Lagos Chamber of Commerce and Industry advises that the government adopt responsible budgetary policy measures.
This is especially true in terms of borrowings, as well as the need to address the problem of food inflation by quickly cutting back on and eliminating taxes on basic food items to safeguard the most vulnerable.
We therefore request that the government expedite the distribution of the anticipated palliatives in order to decrease the effect of the price trend towards increase on economic agents.
Furthermore, “especially at this time, we urge the Central Bank of Nigeria (CBN) to pause interest rate increases to ease the pressures on the supply side,” Amona stated.