Nigerian inflation accelerates in July

Nigerian consumer prices rose 14% in July compared with a year earlier, with the pick up from the previous month’s 12% inflation rate driven by rising food prices, data showed on Thursday.

Food prices, which make up the bulk of the index basket, rose 20,9% in July after rising by 18,1% in June, the National Bureau of Statistics (NBS) said in its monthly inflation report.

The composite consumer price index climbed 2,2% to 188,1 points compared to 184 points in June, the report said.

“The rise in the index was caused mainly by increases in the prices of some staple food items, diesel, kerosene, gas and some building materials,” the NBS said.

It was the fourth straight month that Nigeria’s headline inflation had risen after it had fallen to 7,8% in March.

The soaring cost of cereals and fuel has raised inflation concerns around the globe.

Analysts said a sudden rise in Nigeria’s money supply after the release of a portion of its windfall oil savings to the three tiers of government in the last few months had increased inflationary pressure in sub-Saharan Africa’s second biggest economy. - Reuters