The Nigerian Bureau of Statistics (NBS) has confirmed this morning
that inflation in Nigeria has risen again to its highest level in six
years.
Following effects of electricity rates and fuel prices, the
consumer price index, which measure rate of inflation in the economy,
rose by 0.9 percent in April to hit its highest in 2016.
"The Headline index increased by 13.7% (year-on-year), roughly 0.9% points higher from rates recorded in March (12.8%).
"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.
"Lingering structural constraints continue to manifest spill
overs in April as electricity rates, Kerosene prices, the impact of
higher PMS prices and Vehicle Spare Parts were the largest contributors
to the Core Sub index during the month.
"These items as well as other imported items continued to have
ripple effects across many divisions that contribute to the Core. The
index increased by 13.4% in March, roughly 1.2% points from rates
recorded in March," NBS said in its report.
Godwin Emefiele, the governor of the Central Bank of Nigeria (CBN),
hinted the bank’s plan to raise interest rates to encourage savings
following a rise in inflation to 12.8 percent in April.
While awaiting the next monetary policy committee (MPC) meeting
slated for May 24, inflation has taken another jump, which may mean a
further review of the MPC decision.
The inflation report was compiled before the hike in the pump price
of petrol, showing that it may spike to a new high at the end of May.
At 11.38 percent, inflation hit double digit in February, rising to
12.77 in March and 13.72 in April. At this rate, inflation may 20
percent before the end of 2016.
Click here to read the full report on Nigeria Bureau of Statistics' website & Twitter.
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