Nigeria’s Inflation jumps to 21.47%
Abuja (Business Africa Digest) – Inflation rate in Nigeria rose to 21.47% in November from October’s rate of 21.09%, accelerating for the 10th straight month as food prices surged, the National Bureau of statistics(NBS) said on Thursday.
The Statistics bureau attributed the rise to a sharp increase in demand ahead of the Christmas season, import cost hikes due to the depreciation of the naira currency, and a rise in production costs.
A separate food price index showed inflation at 24.13% in November, compared with 23.72% in October, as Africa’s most populous nation continues to struggle with rising prices for staples.
“The rise in food inflation was caused by increases in prices of bread and cereals, oil and fat, potatoes, … and fish,” the NBS said in a report.
Policymakers in Nigeria have said that persistent inflationary pressures are structural and largely imported.
The government expects inflation to remain in double digits, averaging 17.16% next year.
Virag Forizs, emerging markets economist at Capital Economics, said November inflation data was stronger than expected, meaning prices could rise further. She added the central bank could hike rates at its next meeting in January.
High inflation, weak economic growth and mounting insecurity are major issues for voters as Nigeria heads for legislative and presidential elections in February, in which incumbent President Muhammadu Buhari will not take part due to term limits.
The Consumer price index (CPI) measures the monthly change in prices paid by Nigerian consumers. The National Bureau of Statistics (NBS) calculates the CPI as a weighted average of the prices of a basket of goods and services representing aggregate Nigerian consumption spending. The CPI is one of the most used measures of the inflation rate. The inflation rate measures the relative change in CPI between periods, usually reported on a year-on-year basis (annual inflation) and a month-on-month basis (monthly inflation).
