Nigeria’s inflation rate jumped from 18.6% in June to to 19.6 % in July, the highest level since September 2005 and more than double the 9% ceiling of the central bank’s target band.
According to data released by the National Bureau of Statistics, annual food-price growth soared to 22% from 20.6% in June and core inflation, which strips out food costs, quickened to 16.26% in July, compared with 15.75% the previous month. Prices rose 1.8% against the previous month.
Cost pressures are being fanned by a high import bill caused by surging commodity prices, supply shortages, and a slide in the Naira to record lows against the dollar.
The jump in inflation may persuade Nigeria’s monetary policy committee to raise its key interest rate for a third successive meeting on 27th September.
The MPC has hiked its interest rate by 250 basis points since May.
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