Nigeria’s December inflation rises to 28.92%
Inflation rate, the average change in prices of goods and services rose to 28.92 per cent, the highest in 27 years in December from 28.2 per cent a month earlier, the National Bureau of Statistics (NBS) has said.
The acceleration marks the twelfth consecutive month of rising inflation in the West African country.
The increase was largely driven by a hike in electricity tariffs and energy prices, according to the NBS. Diesel prices have more-than doubled from a year ago while gasoline prices are around three times higher than at the end of May, when the government removed a subsidy on the fuel.
Food inflation, which accounts for agricultural products, increased to 33.9% in December from 32.8% in the previous month, the NBS said in the report.
The rise in food inflation was caused by increases in prices of bread and cereals, oil and fat, potatoes, yam and other Tubers, fish, meat, fruit, milk, cheese, and egg.
Prices have also been driven up by the Central Bank of Nigeria’s decision to allow a free float of the national currency, against the dollar and other global currencies, which resulted in a depreciation of the naira.
The high cost of petrol and naira depreciation have resulted in sharp increases in the prices of food, transportation, housing, medicines, cocoa chemicals, industrial raw materials and other essential items, said a chemical dealer.
