Nigeria’s inflation hits two-year high 

Inflation rate dips 0.09% in July – NBS
Illustrative picture. PHOTO: SHIPS & PORTS archive

 

Nigeria’s inflation rose in April to its highest in two years, amidst a coronavirus pandemic that has ravaged global economy.

Data released by the National Bureau of Statistics (NBS) on Thursday showed Nigeria’s inflation at its eighth-month consecutive rise.

NBS’ Consumer Price Index report said inflation rose to 12.34 per cent in April, when compared with April 2019, and up from 0.08 percent in March 2020.

The closure of land borders in the country in August 2019 was a major driving force for the upward trend of the inflation rate of the country since September 2019.

The closure affected the availability of rice, vegetable oil, frozen food and other staples, causing prices of the commodities to be on the increase.

Economies soon became battered by the coronavirus pandemic that has seen economies locked down.

Nigerian states, including Abuja and commercial centre Lagos, have been on a lockdown for close to two months now.

The NBS said the composite food index rose by 15.03 per cent in April 2020 compared to 14.98 per cent in March 2020.

This rise in the food index was caused by increases in prices of potatoes, yam and other tubers, bread and cereals, fish, oils and fats, meat, fruits and vegetables.

In April 2020, all-item inflation on a year-on-year basis was highest in Bauchi, Sokoto, and Plateau while Edo, Abuja, and Kwara recorded the slowest rise.

For food inflation, Sokoto, Akwa Ibom and Abuja recorded the highest while Ebonyi, Edo, and Enugu recorded the slowest rice.

“On month on month basis however, April 2020 food inflation was highest in Akwa Ibom, Lagos and Oyo, while Bayelsa, Ebonyi and Enugu recorded price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate),” NBS said.