Nigeria’s Worst Inflation Rate Raises Pressure For More Interest Rate Hike

Nigeria’s inflation rate surged to a five-year high in June. The National Bureau of Statistics has disclosed in its Consumer Price Index June 2022 report. The worst inflation rate has raised pressure for more interest rate hikes.

Reportedly, the central bank may raise interest rates again next week. Consumer prices rose 18.6 per cent from a year earlier, compared with 17.7 per cent in May, according to the National Bureau of Statistics. The recorded increase in June 2022 is 0.84 per cent points higher compared to the rate recorded in June 2021, which is 17.75 per cent, which means inflation increased to 18.60 per cent on a year-on-year basis.

Increases were recorded in all COICOP divisions that yielded the Headline index. On a month-on-month basis, the Headline inflation rate increased to 1.82 per cent in June 2022, this is 0.03 per cent higher than the rate recorded in May 2022 which was 1.78 per cent.

According to Bloomberg, in analysing price movements for states, the report claimed that Bauchi and Kogi States in Nigeria were suffering due to inflation.

Nigeria’s Inflation

The World Bank recently listed Nigeria amongst the top 10 countries in the world with the worst inflation rate, based on 2021 figures. The inflation is driven by rising prices of bread, rice, wheat, maize and the cost of diesel, which is used to generate power.

Food prices, the major factor for Nigerian inflation, were up 20.6 per cent year-on-year in June. This comes as Nigeria heads for a national election in February. During that time, incumbent President Muhammadu Buhari will step down.

Meta description

Nigeria, Africa’s largest economy, imports many key goods, including wheat, rice, poultry, fish, food services, and consumer-oriented foods. Reportedly, the country relies on $10 billion of imports to meet its food and agricultural production shortfalls.

fatima

Recent Posts

Africa and GCC Trade Doubles to $121 Billion

Trade between African and GCC countries stands at $ 121 billion in 2023, double of what it was in 2016.…

December 21, 2024

Families in Mayotte rebuilding their homes complain of lack of help

Family members struggling after one week after  of Cyclone Chido ripped through the French island territory of Mayotte expressed helplessness…

December 21, 2024

Ethiopian PM Inaugurates UAE-Funded Orphanage in Oromia

The United Arab Emirates has launched its orphanage project in Ethiopia's Oromia region on the orders of President Sheikh Mohamed…

December 21, 2024

A Rising Femicide Threat, Kenya’s Call to End Gender Based Violence

In just four months, 100 women have been killed, the majority by males they knew including spouses. Prime Cabinet Secretary…

December 20, 2024

Actor C Confion has passed away

The Ghanaian entertainment industry is in deep mourning following the sudden death of Bright Owusu, better known as C Confion.…

December 20, 2024

South Africa: 512 Accident Deaths and 941 Arrested for Drunk Driving Just on December Month

Since the beginning of December more than five hundred people have lost their lives on the nation's highways. Barbara Creecy,…

December 19, 2024

This website uses cookies.