Search
Close this search box.
Nigeria Inflation Rises To 18-Year High in July as Reform Effects Linger
Nigeria Inflation Rises To 18-Year High in July as Reform Effects Linger
Nigeria Inflation Rises To 18-Year High in July as Reform Effects Linger
– By Chigozie Ikpo

       Share 

Facebook
Twitter
LinkedIn
WhatsApp

Nigeria Inflation Rises To 18-Year High in July as Reform Effects Linger

Nigeria’s annual inflation rose to its highest level in nearly two decades in July at 24.08% against 22.79% in June, worsening a cost-of-living crisis in Africa’s largest economy as President Bola Tinubu’s reforms continue to take effect.

Inflation in Nigeria has been in double digits since 2016, eroding savings and incomes and prompting the central bank to hike interest rates to their highest level in nearly two decades.

In the boldest reforms seen in years, Tinubu scrapped a popular but costly petrol subsidy, causing prices to triple, and ended restrictions on foreign exchange trading, which has weakened the naira more than 40%.

Food inflation, which accounts for the bulk of Nigeria’s inflation basket, rose to 26.98% in July from 25.25% in June.

“The rise in food inflation on a year-on-year basis was caused by increases in prices of oil and fat, bread and cereals, fish, potatoes, yam and other tubers, fruits, meat, vegetable, milk, cheese, and eggs,” the statistics agency said.

Analysts including the World Bank had warned that a weaker currency and the fuel subsidy removal were likely to push inflation higher in the short term.

Folashodun Adebisi Shonub, Acting CBN Governor
Folashodun Adebisi Shonub, Acting CBN Governor

Acting central bank governor Folashodun Shonubi recently said plans were underway for measures that would impact the currency market, after the naira hit a record low on the parallel market due to dollar shortages on the official market where the currency has also weakened since the devaluation.

Related Posts

In July, at its first monetary policy meeting since Tinubu suspended central bank governor Godwin Emefiele, the bank raised its main lending rate by 25 basis points to 18.75%.

Tinubu, who is under pressure as prices soar following his reform agenda, has defended his action, saying Nigeria has saved over a trillion naira in just over two months since reforms were started.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Newsletter

Get to read our latest stories right in your email

Show some Love. Share this post

Copyright 2022. All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from Majorwaves Energy Report

Show Buttons
Hide Buttons