Nigeria’s inflation rate jumps to 13.7 percent
- The inflation figure for April is the highest the NBS has recorded since June 2010.
The National Bureau of Statistics (NBS) said on Monday that Nigeria’s inflation rate rose to 13.7 percent year-on-year in April 2016 from 12.8 percent year-on-year recorded in the previous month.
The inflation figure for April is the highest the NBS has recorded since June 2010.
“The higher rate of increase relative to March, was reflected in faster increases across all divisions which contribute to the index with the exception of the restaurants and hotels division which increased, albeit at a slower pace for the third consecutive month,” the NBS said.
Food inflation rose to 13.2 percent in April, up by 0.4 percentage points from March, as all major food groups which contribute to the food sub-index increased at a faster pace. There were higher food prices in fish, bread and cereals, and vegetable groups recorded in April.
Since November 2014, Nigeria’s inflation has been rising steadily as the country’s macroeconomic conditions deteriorated due to fallen crude oil prices. The inflation rate surpassed the Central Bank of Nigeria’s upper limit of 9 percent in June 2015. In March 2016, the CBN raised its benchmark interest rates from 11 percent to 12 percent to curb the inflationary pressures.
In April, the NBS said core inflation – which includes all items except farm produce – rose to 13.4 percent, from 12.2 percent recorded in March.
“Lingering structural constraints continue to manifest spill overs in April as electricity rates, kerosene prices, the impact of higher PMS [Premium Motor Spirit] prices and vehicle spare parts were the largest contributors to the core sub index during the month,” the NBS said.
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