Nigeria’s Inflation Rises in August

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  • Nigeria’s Inflation Rises in August

Inflation rose in Africa’s largest economy Nigeria in August for the first time in 18 months, the National Bureau of Statistics (NBS) said on Friday.

According to the NBS, inflation rate jumped from 11.14 percent in July to 11.23 percent in August, putting an end to 18 months of falling inflation rate from a peak of 18.72 percent in January 2017.

The data also showed that food prices climbed 13.16 percent in August, up from 12.85 percent recorded in July.

During the last monetary policy meeting in Abuja, Godwin Emefiele, governor of the Central Bank of Nigeria predicted a rise in inflation rate ahead of the national election scheduled for February 2019.

The governor said implementation of 2018 budget and pre-election spending are likely to push up consumer prices by the end of the year. Therefore, the CBN-led committee agreed to left interest rate unchanged at 14 percent against a wide call for lower borrowing cost.

Razia Khan, the chief economist for standard charter Africa, said: “Now, the main factor to watch is when and by how much pre-election spending kicks in, pressuring inflation.”

Politicians are expected to spend more on campaign during the months leading to elections while the federal government will try to complete projects.

 

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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