By NewsBits
The National Bureau of Statistics (NBS) in its latest report on Wednesday said inflation in Nigeria picked up again in January, hitting 21.82 per cent in annual terms, driven by higher food inflation.
The report is coming as Nigerians suffer the harsh Naira redesign and introduction. Ever since the Central Bank of Nigeria (CBN) led by Mr Godwin Emefiele introduced the new Naira notes, and mopped up the old one, Nigerians have suffered untold hardship trying to have access to their monies in Deposit Money Banks (DMBs) across the country.
NBS also said inflation had risen in Africa’s biggest economy for 10 straight months, prompting a string of interest rate hikes from the central bank, before a dip to 21.34 per cent in December. Food inflation, which accounts for the bulk of Nigeria’s inflation basket, rose to 24.32 per cent in January from 23.75 per cent in December.
High inflation, weak economic growth and mounting insecurity are major issues for voters as Nigeria heads for legislative and presidential elections this month. President Muhammadu Buhari is not running again due to term limits. “The contributions of items on a class basis to the increase in the headline index are: bread and cereal, actual and imputed rent, potatoes, yam and tuber, vegetable and meat,” the National Bureau of Statistics said in its inflation report.
Policymakers have linked inflationary pressures to Nigeria’s infrastructure problems and the fact that a lot of items people consume are imported. Central Bank of Nigeria Governor Godwin Emefiele has said the bank will maintain a hawkish stance on rates if inflation remains elevated.
The CBN hiked its key interest rate to 17.5 per cent in January, meaning there have been 600 basis points of rate hikes since last May. Emefiele on Tuesday told diplomats that the regulatory bank’s naira reform policy is expected to cut inflation by around two per cent.
“Our principal aim, with the currency redesign initiative, is to make our Monetary Policy decisions more efficacious and like you can see; we have started to see inflation trending downwards and exchange rates relatively stable,” the governor said on Tuesday.
