Under APC, Nigeria’s Inflation Hits 11-Year High
Despite continued promises by the Muhammadu Buhari led administration on curtailing Nigeria’s economic challenges, inflation, on Monday hit an 11-year high at 16.5 per cent, as the crisis in Africa’s biggest economy deepens.
This was according to the Consumer Price Index released by the National Bureau of Statistics, which indicated that the country’s inflation rate rose from 15.6 per cent to 16.5 per cent in June.
The data increase represents the highest rate since October 2005.
According to the data, food prices rose 15.3 percent in June from a year earlier, compared with 14.9 percent in May. The highest increases were in the costs of fish and meat, fruit and vegetables, bread and cereals, NBS said.
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“In June, the Consumer Price Index which measures inflation continued to record relatively strong increases for the fifth consecutive month,” the statistics office said.
“The Headline index increased by 16.5 per cent (year-on-year), 0.9 percentage points higher from rates recorded in May (15.6 per cent).
“During the month, the highest increases were seen in the electricity, liquid if fuel (kerosene), furniture and furnishings, fuel and lubricants.”
According to economic analysts, the implication of this rise is that consumers may experience tougher times ahead owing to reduction in their purchasing power.
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Recently, the naira’s official exchange rate weakened to more than 280 per dollar, compared with the fixed rate of 197-199, and the currency trades at around 360 on the black market, increasing prices for consumers.
The Central Bank of Nigeria, will announce its next interest-rate policy decision on July 26, after its benchmark rate at 12 percent in May.
