Nigerian Annual Inflation Nears Three-Year High In November

Annual inflation in Nigeria rose in November for the 15th straight month, to almost a three-year high, the National Bureau of Statistics said on Tuesday, as food prices lifted the price index.

Inflation rose to 14.89% in November, compared with 14.23% in October. A separate food-price index showed inflation at 18.30% last month, compared with 17.38% in October.

“This rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, meat, fish, fruits, vegetables and oils and fats,” the statistics office said in a report.

Nigeria is facing a recession triggered by a coronavirus-induced crash in oil prices that have hammered its economy, creating large financing needs and weakening the naira. That has made imports more expensive, adding to inflationary pressure.

An analyst at Lagos-based consultancy Financial Derivatives said government action to deregulate petroleum prices to cut subsidies and raise electricity tariffs will pass through to inflation this year.

– Reuters