The Central Bank of Nigeria has lamented that the countrys inflation rate which stood at 12.82 per cent in July may rise up to 14.15 per cent by the end of December 2020.
The development is coming as the federal governments deficit rises in the face of the prevailing economic difficulties in the country.
The apex banks explanation was contained in its report titled Monetary, credit, foreign trade and exchange policy guidelines for fiscal years 2020/2021.
It noted that fiscal and monetary policy responses were put in place to neutralize the adverse effects on growth-inducing sectors of the economy.
The CBN stated that in 2020/2021, the primary objective of monetary policy remained the maintenance of price and financial system stability.
The CBN added that in 2020, it will continue to sustain measures to abate the level of rising inflation through effective liquidity management measures.