Nigeria’s inflation rate accelerated further in January and reached almost 30% in annual terms, driven by soaring food costs and the fall of the country’s naira currency to record lows.
Consumer inflation rose for the 13th straight month in January to 29.90% year-on-year from December’s 28.92%, according to data released by the National Bureau of Statistics (NBS).
Inflation in Africa’s biggest economy and most populous nation has not climbed so high since mid-1996, eroding incomes and savings, and worsening a cost-living-crisis.
The weaker naira, which suffered a second devaluation in less than a year last month, is a key factor behind price pressures alongside energy and logistics costs associated with infrastructure problems.
The food and non-alcoholic beverages category was the biggest driver of inflation in January in annual terms. Food inflation rose to 35.41% in January, from 33.93% in December.
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