Nigeria’s Inflation at 11-Year High

The cost of living in Nigeria rose for the fifth consecutive month in June, propelled by increases in energy costs and prices of imported items and food.

Year-on-year, the consumer price index which measures inflation rose from 15.6 percent in May to 16.5 percent in June, reaching its highest in 11-years, the National Bureau of Statistics reported on Monday. On Monthly basis, inflation dropped from 2.8 percent in May to 1.7 percent in June.

While core inflation which excludes energy and food items increased from 15.1 percent year-on-year in May to 16.2 percent in June.

“During the month, the highest increases were seen in the Electricity, Furniture and Furnishings, Liquid Fuel (kerosene), Passenger Transport by Road, and Fuels and Lubricants for Personal Transport Equipment.”

Prices of imported foods continue to increase at a faster pace, pushing the gauge of imported food to 15.3 percent (year on year) in June, up by 0.4 percent from 14.9 percent recorded in May. The index was weighed upon by an increase in the Vegetables and “Sugar, jam, honey, chocolate and confectionery” groups.

Experts have blamed the situation on forex scarcity and called on the Central Bank of Nigeria to intervene at the interbank market to aid importers of food items and energy products by modulating foreign exchange rate for affordable imports.