The inflation rate in Nigeria and other emerging-market economies as well as many advanced economies is expected to remain on the high side, according to projections.

The Organisation for Economic Cooperation and Development (OECD) which periodically analyses major economic trends and prospects, revealed this projection during its latest Interim Economic Outlook which held virtually on Tuesday.

OECD partly blames this projection on the “jumps in commodity prices and past currency depreciation,” while also adding that “a faster-than-expected recovery in demand, especially from China, coupled shortfalls in supply, has pushed food and metal prices considerably, and oil prices have rebounded to their average level in 2019.”

“Temporary supply shortages in specific

sectors, including semiconductors and shipping, are also contributing to the higher input cost pressures,” it stated.

OECD further noted that “underlying price pressures generally remain mild in the advanced economies, reflecting sizeable spare capacity and still weak labour markets, although one-off factors, such as re-opening in sectors previously subject to containment measures and indirect tax changes, are contributing to inflation at present.”

The economic body further expects that “in the major emerging-market economies, inflation could be higher than expected if domestic currencies depreciate further due to rising

relative returns in the United States.”

Peoples Gazette had on Saturday reported that the Central Bank of Nigeria (CBN) on Friday issued a directive to banks and International Money Transfer Operatives (IMTO) that they should pay N5 for every $1 on diaspora remittances.

Called the “Naira 4 Dollar scheme”, the effect of this order by the country’s bank regulator on the nation’s poor inflation rate and economy at large, which it says is aimed at “encouraging increase in inflows of diaspora remittances,” still remains to be seen.