The Nigerian Bureau of Statistics (NBS) has confirmed this morning that inflation in Nigeria has risen again to its highest level in six years.
Following effects of electricity rates and fuel prices, the consumer price index, which measure rate of inflation in the economy, rose by 0.9 percent in April to hit its highest in 2016.
“The Headline index increased by 13.7% (year-on-year), roughly 0.9% points higher from rates recorded in March (12.8%).
“The higher rate of increase relative to March, was reflected in faster increases across all divisions which contribute to the index with the exception of the Restaurants and Hotels division which increased, albeit at a slower pace for the third consecutive month.
“Lingering structural constraints continue to manifest spill overs in April as electricity rates, Kerosene prices, the impact of higher PMS prices and Vehicle Spare Parts were the largest contributors to the Core Sub index during the month.
“These items as well as other imported items continued to have ripple effects across many divisions that contribute to the Core. The index increased by 13.4% in March, roughly 1.2% points from rates recorded in March,” NBS said in its report.
Godwin Emefiele, the governor of the Central Bank of Nigeria (CBN), hinted the bank’s plan to raise interest rates to encourage savings following a rise in inflation to 12.8 percent in April.
While awaiting the next monetary policy committee (MPC) meeting slated for May 24, inflation has taken another jump, which may mean a further review of the MPC decision.
The inflation report was compiled before the hike in the pump price of petrol, showing that it may spike to a new high at the end of May.
At 11.38 percent, inflation hit double digit in February, rising to 12.77 in March and 13.72 in April. At this rate, inflation may 20 percent before the end of 2016.