Soaring Pains Nigeria inflation rate rises to 2-1/2% high

With the soaring inflation rates in the country, food prices have continued to climb.

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Nigerian market

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Nigeria’s consumer inflation rate rose by 0.2 percentage points to 9.2 percent in June compared with the same month last year, its highest rate since February 2013 and above the central bank’s targeted upper limit.

The figure released recently by a Reuters poll of analysts show that food prices in the country has risen sharply by two and a half percent.

Food inflation edged higher to an annual 10.0 percent in June, up 0.2 percentage points from May, as disruptions to fuel distribution affected food prices.

The poll indices states:

"The irregularity of the supply of Premium Motor Spirit continues to impact food prices,” according to the National Bureau of Statistics (NBS).

It also added that a delayed rainy season and resulting late harvest has also been putting upward pressure on prices.

Major cities in Africa’s biggest economy suffered acute fuel shortages in May arising from disputes over subsidy payments.

Worries that the new government elected in March would not honour previous subsidy debts prompted some importers to stop fuel imports and distribution. The shortages disrupted key services including telecommunications, banking and aviation.

The NBS in March said it expected inflation to inch up to around 9 percent this year, from its January forecast of 8.78 for 2015, following a currency devaluation meant to counter the impact of lower revenues from crude oil, Nigeria’s main export.

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