Inflation Hits 6 Year High At 13.7% On Fuel, Electricity Prices

Nigeria’s inflation figure for April soared to a six year high of 13.7 per cent from 12.8 per cent which it was in March as rising petrol and electricity prices affected the cost of goods and services.
According to the National Bureau of Statistics (NBS) 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. 
The data office said 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 per cent in March, roughly 1.2 per cent points from rates recorded in March.
“Increases in imported as well as domestically produced foods resulted in a higher increase in the Food Subindex in April. The index increased by 13.2 per cent (Year-on-year) during the month, 0.4% points higher from rates recorded in March” the NBS said in its Consumer Price Index Report.
Nigeria is facing its worst crisis in decades, driven by a sharp drop in crude prices that has slashed government revenues and weakened the naira currency. Gross domestic product growth was just 2.8 percent last year, its lowest rate in decades.
Food prices, which account for the bulk of the inflation basket, rose 13.2 percent in April, up 0.4 percentage points from March, the bureau said on its website.
Inflation has also been fuelled by pressure on the naira, which on Monday slipped to its weakest level in months against the dollar in the non-deliverable forward market.
Speculation that the Central Bank of Nigeria will soon devalue the currency – which the bank denied on Sunday – has swirled since the vice president last week said foreign currency policies needed to be changed to encourage investment.
The Monetary Policy Committee of the CBN is expected to meet next week to deliberate on monetary policies.

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