Nigeria Employers' Consultative Association, NECA, has called on the federal government to entrench and sustain productive foreign exchange, FX, management through adequate intervention in the forex market to address the high rate of inflation in the economy.

The umbrella body of employers in the country advised the monetary authority to also adjust its current reduction of money in circulation to an optimum quantum that would stabilize the economy.

Director-General of NECA, Adewale-Smatt Oyerinde, who made the call, warned that rising food cost across the country would further put a strain on household budgets, elevate food insecurity and lower standard of living, saying the latest National Bureau of Statistics, NBS, report showed that food inflation contributed the highest to the increase in inflation during the month at 33.93 per cent.

Oyerinde said: "NBS reported acceleration in headline inflation to 28.92 percent in December 2023. This showed 10.18 percentage points increase from 23.75 percent in December 2022. It also indicated a 0.75 per cent increase when compared with the 28.20 per cent recorded in the preceding month. Food Inflation contributed the highest to the increase in inflation during the month as it stood at 33.93 per cent.

"A moderate inflation rate such as 3-5 per cent is healthy to any economy, but at double digits, it becomes detrimental to economic activities. The average inflation in the economy from July to December 2023 was 26.84 per cent. An inflation rate as high as 26.84 perc ent is very harmful to the economy.