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The National Bureau of Statistics reported on Friday that Nigeria’s inflation rate increased by 17.6 per cent year-on-year in August from 17.1 per cent recorded in the previous month. With the latest inflation figure, the country’s Consumer Price Index (CPI) has now increased for ten consecutive months from 9.4 per cent recorded in November 2015.

The NBS said, “Increases were recorded in all divisions which contribute to the headline index reflecting higher prices across the board. The major divisions responsible for accelerating the pace of the increase in the headline index were housing, water, electricity, gas and other fuel, education and transportation services.”

Food inflation rose by 16.4 per cent in August from 15.8 per cent recorded in the previous month. On a month-on-month basis, food inflation rose by 1.2 per cent, the same pace recorded in the previous month.

“Imported food items as well as other necessary inputs to producing key local staples such as bread continue to drive the food index higher,” the statistics agency said. “The highest price increases were recorded in meat, fish, and bread & cereals groups.”

Core inflation, which excludes the prices of agricultural produce, rose by 17.2 per cent in August from 16.9 per cent in July. On a month-on-month basis, core inflation slowed to 0.9 per cent last month from 1.2 per cent in July.

“Energy prices as well as other imported items (such as vehicle spare parts) continue to be key contributors to movements in the core index,” the NBS said.

Major inflationary pressures in the country include the rise in fuel prices following the removal of petrol subsidy; devaluation of the naira, which has caused the repricing of the local currency; as well as foreign currency shortages that have led to sharp increases in the cost of imports.

The quickening inflation, which crossed the Central Bank of Nigeria’s upper target rate of 9 per cent in June last year, caused the apex bank to raise its benchmark interest rate by 200 basis points from 12 per cent to 14 per cent in July.