Inflation: How well does Keyamo’s Nigeria claim outperform the US, Canada and others?

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Minister of State for Labor and Employment, Festus Keyamo, said Nigeria was doing better than leading countries in the world in terms of percentage rise in inflation rate.

Keyamo, speaking on Channels Television’s Politics Today, said Nigeria fares better than the United States of America, Canada, Russia, Spain and others when it comes to the rise in inflation.

Full Story: Senior Advocate for Nigeria (SAN) says inflation in Nigeria is only 5% up from 2020 when the world went into lockdown due to COVID-19 pandemic 19.

He said that other countries around the world have seen their inflation rates increase by a higher percentage than Nigeria.

“With what we have been through over the past seven years, Nigeria has done well in the context of the global macro economy of the major countries of the world.

“The inflation rate was hovering around 13% in 2020 around the pandemic. Now we are doing 18%. That’s about 5%.

“We are better than the big countries in the world like the United States of America, like Canada, like Russia, like Spain, like Germany. Go check me out. I’m not saying their inflation is 18%. I’m talking about the percentage increase. In other words, we tried to keep inflation lower than the big countries,” Keyamo said.

VERDICT: In checking the Minister’s claim, Daily Trust found that while the claim about the percentage increase is true, his other claim about Nigeria’s inflation rate doing better than countries like the United States is false .

Claim 1: The percentage increase in inflation in Nigeria is lower than that of the United States, Canada and others

Verdict: True

Verification: Nigeria’s inflation rate in January 2020 was 12.13%. Inflation reached 15.75% in December 2020 according to the National Bureau of Statistics.

Thereafter, headline inflation rose to 15.63% in December 2021 from 15.40% in November 2021.

Currently, Nigeria’s inflation rate rose to 19.64% in July, its highest figure in 17 years, according to the BES

the United States of America

In December 2020, the inflation rate in the United States was 1.4%, compared to 1.2% the previous November.

Subsequently, a consumer price index, a measure that measures the costs of dozens of items, rose 7% in December 2021, according to the U.S. Department’s Bureau of Labor Statistics.

Currently, the annual inflation rate in the United States hit 9.1% in June, the highest rate in nearly 41 years.

Canada

Consumer price inflation in Canada slowed from 1.0 in November 2020 to an annual rate of 0.7% in December 2020.

It then rose to 4.8% at the end of 2021 (December 2021).

However, inflation in Canada in June 2022 was 8.1%, according to World Bank data.

Germany

In Germany, the annual inflation rate in December 2020 was 0.51%.

This figure then rose to 3.14% at the end of December 2021.

In July 2022, the inflation rate in Germany stood at 7.5%, according to the German statistics body.

Spain

According to Statista, at the end of December 2020, Spain’s inflation rate stood at -0.32%, a decrease of 1.02% compared to 2019.

Inflation figures rose further to 3.1% at the end of December 2021.

However, consumer prices rose 10.8% on an annual basis in July, compared to 10.2% in June and the fastest rate since September 1984, the National Statistics Institute (INE) said. Spanish in a press release.

Like most of its European neighbours, Spain is grappling with an unprecedented spike in inflation due to the economic fallout from the war in Ukraine and the reopening of economies after the coronavirus lockdown.

Russia

In Russia, the inflation rate at the end of 2020 amounted to 3.38%. It then rose to 6.7% at the end of 2021.

The latest figures from Russia’s statistics body showed that the inflation rate has now skyrocketed to 15.9% in July 2022.

This may not be unrelated to the current war between Russia and Ukraine, which has caused devastating damage to different economies around the world.

Conclusion: Following verification of the figures by the World Bank and the statistical authorities of the above-mentioned countries, Daily Trust found that the percentage increase in the rate of inflation in Nigeria is relatively small compared to the countries examined. As such, Mr. Keyamo’s assertion is TRUE. .

Claim 2: Nigeria does better on inflation than the United States, Canada and others

Verdict: FALSE

Verification: In verifying the claim, Daily Trust sought to know the inflationary figures for these countries and the implications.

What is Inflation?

In economics, inflation is a general increase in the prices of goods and services in an economy. When the general price level rises, each monetary unit buys fewer goods and services; therefore, inflation corresponds to a decrease in the purchasing power of money

Therefore, most of the countries mentioned by Keyamo have single-digit inflation, with the exception of Russia and Spain which have double-digit inflation.

Therefore, an economy with single digit inflation will naturally do better than an economy with double digit inflation as in the case of Nigeria.

With the increase in overall and food inflation, this automatically translates into an increase in the cost of items and services, which further suggests low purchasing power for low and middle income people, as it is currently the case in Nigeria.

Conclusion: Verification by Daily Trust shows that Nigeria’s double-digit inflation figures have a significant effect on the economy compared to other countries listed by Mr Keyamo whose figures are still single digits, as such , the statement is FALSE.

This Fact Check was produced in partnership with the Center for Democracy and Development (CDD).

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