Nigeria's inflation hits record high of 16.5 pct

By Rafiu Ajakaye

LAGOS, Nigeria

Nigeria’s inflation has hit a record high of 16.5 percent, the worst level in 11 years, as the prices of consumer goods and energy spiked in June, according to a National Bureau of Statistics report on Monday.

The inflation rate stood at 15.6 percent in May.

“In June, the Consumer Price Index (CPI), which measures inflation, continued to record relatively strong increases for the fifth consecutive month. The headline index increased by 16.5 percent (year-on-year), 0.9 percentage points higher from rates recorded in May (15.6 percent),” the report stated.

The bureau said inflation rose significantly as a result of increases in energy costs as well as a rise in the prices of imported food and items.

“The core index increased by 16.2 percent in June, up by approximately 1.2 percentage points from rates recorded in May (15.1 percent).

“During the month, the highest increases were seen in electricity, liquid fuel (kerosene), furniture and furnishings, passenger transport by road, fuels and lubricants for personal transport equipment,” the report added.

Coming amid tension in the country's Middle Belt amid herdsmen/farmers clashes and the bombing of oil pipelines in the delta region, the rise in inflation could ratchet up pressure on President Muhammadu Buhari’s administration to do more to fix an economy battered by low oil prices and a currency crisis.