By MacDonald Dzirutwe
LAGOS (Reuters) – Inflation in Nigeria rose for a seventh straight month to 20. 52 in August, the statistics office said on Thursday ahead of a central bank rate resolution next week.
The central bank will meet on Tuesday to assess rates in Africa’s largest economy. In the past, he said he will continue to raise rates if inflation remains high.
Refinitiv data showed that year-on-year inflation in Nigeria remained at its highest point since September 2005. On a monthly basis, the customer value index rose 1. 77 percent in August, up from 1. 82 percent in July, the National Bureau of Statistics said. .
Food inflation accelerated to 23. 12% from 22. 02% last month, as Nigerians continued to face higher costs for commodities such as rice and bread.
The price of diesel has soared this year due to high global oil prices, which has led to higher electricity prices for citizens, while the weakening of the naira in the parallel market has made some imports more expensive.
Inflation has been in double digits in Nigeria since 2016, due to the weakening of the naira.
“In Nigeria, inflation is fuelled through several points, but the main points are the pressure on exchange rates and the value of diesel,” Financial Derivatives Company said in a note to investors.
Nigerians will go to the polls in February to president Muhammadu Buhari’s successor, with emerging inflation and the state of the economy marked as major disruptions for voters.
Nigerian policymakers argue that persistent inflationary pressures are structural and largely imported.
(Reporting via MacDonald Dzirutwe; editing via Tothrough Chopra and Mark Heinrich)
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