According to National Bureau of Statistics (NBS), inflation rose by 16.5% in June from 15.6% in May. The inflation rate in June is the highest since October 2005
Nigerian inflation accelerated to the highest rate in almost 11 years in June, complicating the task of the central bank in an economy which is at risk of contracting this year.
The inflation rate in Africa’s largest economy increased to 16.5 percent from 15.6 in May, the Abuja-based National Bureau of Statistics said in an e-mailed statement on Monday. That’s the highest rate since October 2005, according to data on the Central Bank of Nigeria’s website. Prices rose 1.7 percent in the month. The median of seven economist estimates compiled by Bloomberg was for inflation to quicken to 16.2 percent.
Nigeria imports at least 70 percent of its refined fuel, despite pumping 1.6 million barrels of crude a day in June according to the International Energy Agency, and faced fuel shortages as retailers struggled to get foreign currency to buy product during a 15-month naira peg that was removed last month. The currency’s official exchange rate weakened to more than 280 per dollar, compared with the fixed rate of 197-199, and the naira trades at around 360 on the black market, increasing prices for consumers. – Bloomberg