Steve Hanke, a professor of Applied Economics at Johns Hopkins University, US, has argued that Nigeria’s inflation rate is 52%, higher than the figures being reported by the National Bureau of Statistics (NBS).
On Hanke’s Inflation Dashboard, Nigeria’s inflation rate is listed at 52%, far above the 20.8% NBS figure for September 2022.
Hanke measured the inflation rate in Nigeria using high-frequency, free-market exchange-rate data in combination with Purchasing Power Parity (PPP) theory. The rapid depreciation of the naira in the black market was also factored into calculating the inflation rate.
The economic theory of PPP is commonly used to compare the economic health of countries. PPP measures are also used by global institutions such as the World Bank, United Nations, International Monetary Fund and European Union.