By Chijioke Ohuocha
ABUJA (Reuters) – Nigeria’s annual inflation accelerated in July to its point since 2005, official information showed on Monday, boosted by emerging costs of food, fuel and clothing.
The Office for National Statistics (NBS) said inflation rose for the sixth straight month, reaching 19. 64 from 18. 60 year-on-year in June.
The SNB’s knowledge showed that July inflation is the highest since at least the beginning of 2009.
Refinitiv’s knowledge showed that it is the highest since the 24. 32% recorded in September 2005.
Inflation has been in double digits in Africa’s largest economy since 2016, driven by the weakening of its Nira currency.
Food costs rose 22. 02% year-on-year in July as costs of bread and cereals, potatoes, yams, meat, fish, oil and others rose.
Core inflation, which excludes the prices of agricultural products, increased by 16. 26% compared to the same time last year, with gas, liquid and forged fuels, land and air transport, clothing and clothing rental among the contributing factors.
Rising inflation and the state of the economy are the main issues as the country heads into national elections in February, when the electorate will elect a new president following the resignation of current President Muhammadu Buhari.
The Naira currency has weakened in the parallel market due to currency shortages since July 2021, when the central bank halted foreign exchange sales to foreign exchange investors to ease pressure on reserves and the official market.
This resolution channeled demand into the unofficial market, where it is freely exchanged.
Policymakers say persistent inflationary pressures are structural and largely related to imports.
Analysts at Capital Economics said in a study note that inflation in Nigeria is probably not far from its peak, but would remain high.
They predicted an extra in interest rates at the central bank’s next policy meeting in September.
(Reporting via Chijioke Ohuocha, editing via Alexander Winning and Ed Osmond)
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