Annual inflation in Nigeria peaked at five-and-a-half years in June, official data showed on Friday, driven by rising prices of staples such as bread, rice and maize and the cost of diesel, which is used to produce energy.
Statistics Iceland said that inflation rose for the fifth month in a row to 18.6%, compared with 17.71% in May.
Food prices, which are a major factor in inflation in Nigeria, rose by 20.6% year-on-year in June. Core inflation, which excludes agricultural commodity prices, increased by 2.66 percentage points to 15.75% during the period.
“This increase in the food index was due to price increases for bread and cereals, food, potatoes, yam and other tubers, meat, fish, oil and fat and wine,” said Statistics Iceland.
Inflation, which has been at an all-time high since January 2017, and the state of the economy are big issues for voters as the country faces national elections in February, when incumbent President Muhammadu Buhari resigns.
Nigeria, Africa’s largest economy, imports many key products and services. However, many importers do not have access to dollars from the public market due to restrictions by the central bank, which forces them to buy on the black market as the naira continues to weaken.
“The combined effects of energy costs, depreciation and monetary saturation are reflected in the inflation cycle,” the Financial Derivatives Company said in a comment to customers.
The World Bank said in a report last month that the war in Ukraine had exacerbated Nigeria’s economic situation, raised prices for imported food and fertilizer supplies, as well as increased volatility in oil prices and uncertainty about capital flows.
In May, the Central Bank raised its benchmark interest rate by 150 basis points to 13%, its first rise in more than two years, to combat rising inflation and a collapse in markets.
Consumer inflation in Nigeria the highest in more than five years – SABC News
Source link Consumer inflation in Nigeria the highest in more than five years – SABC News