Pascal Arogorn Ibe
The inflation rate in Nigeria jumped in December to its highest level in more than three years , data released on Friday by the National Bureau of Statistics showed .
Inflation stood at 15. 75 per cent in December , compared with 14. 89 per cent in November , marking the 16th straight month of increases.
The consumer inflation rate in December was the highest since November 2017, when it stood at 15. 90 per cent .
The NBS said the composite food index rose by 19. 56 per cent in December from 18. 30 percent in November.
“ This rise in the food index was caused by increases in prices of bread and cereals , potatoes , yam , and other tubers, meat , fruits, vegetable, fish and oils , and fats, ” it added .
Analysts at the Financial Derivatives Company Limited , led by foremost economist Bismarck Rewane , had said last week predicted that headline inflation would increase by 0. 51 per cent to 15. 4 per cent in December , describing it as “ a hydra-headed monster that has eroded the disposable and discretionary income of consumers ” .
“ The continued rise in the general price level is driven largely by forex rationing , output and productivity constraints, higher logistics and distribution costs , ” they said .
The analysts noted that consumer disposable income had been negatively affected by the hike in electricity tariffs , general reductions in subsidies , and improved tax mobilisation.
“ We believe the sustained pressure in the food basket is reflective of the impact of the underwhelming harvest season, persistent security challenges in the food-producing regions, and festive induced demand which further widened the demand -supply imbalance, ” Cordros Capital Limited said in an emailed note on Friday.
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