Nigeria Inflation at 20.52% Approaches Two-Decade High
By Bashir Olanrewaju
Nigeria’s annual inflation jumped to 20.5 percent in August , approaching the highest in two decades, as price pressures mounted from higher costs for food, fuel and imports, according to the monthly consumer price index report by the National Bureau of Statistics.
“This was 3.52% points higher compared to the rate recorded in August 2021, which was (17.01%),” statistics agency said in the report posted on its website. “This shows that the headline inflation rate increased in the month of August 2022 when compared to the same month in the preceding year.”
On a month-on-month, the inflation rate for August was 1.77 percent, slightly lower than the 1.82 percent registered in July. Food inflation rose to 23.12 percent, higher than the 20.30 percent a year earlier. Apart from food items, higher prices were also reported for fuel, road and air transportation.
Africa’s biggest economy has experienced prolonged fuel shortages as higher prices crude oil prices engendered by the Ukraine war has stretched government finances for fuel imports at a time of falling export revenue. Unrest in the Niger Delta oil region and the consequent loss of output, have meant that the government can’t meet export revenue targets, the main source of government funding.
The Central Bank of Nigeria’s Monetary Policy Committee has raised its benchmark interest rate twice this year, reaching 14 percent at its last meeting in July. With price increases persisting, the Godwin Emefiele-led CBN may consider further raising the MPC rate to help tamp down inflation.