Inflation rises to 9.2 %, reaches 2-1/2 year high

The country’s consumer inflation rose by 0.2 percentage points to 9.2 percent in June compared with the same month last year.

The latest rise is the highest rate since February 2013, which is the Central Bank of Nigeria’s (CBN) targeted upper limit.

According to the data released yesterday by the National Bureau of Statistics (NBS), food inflation moved to an annual 10.0 percent last

month, a 0.2 percentage points rise that of May.

The rise in inflation was attributed to fuel scarcity that caused food prices to increase in the month.,

The NBS explained, “Irregularity of the supply of Premium Motor Spirit (gasoline) continues to impact food prices.” 

The bureau also stated that the delay in the commencement of rainy

season that cumulate into late harvest impacted on prices negatively.

Major cities in Africa’s biggest economy suffered acute fuel shortages in May arising from disputes over subsidy payments.

Worries that the new government elected in March would not honour previous subsidy debts prompted some importers to stop fuel imports and distribution.

The shortages disrupted key services including telecommunications, banking and aviation.

The government last week agreed to pay the outstanding subsidy-related debt.

Africa’s biggest oil producer relies almost wholly on imports for its 40 million litres a day petrol consumption owing to a neglected refining system.

The NBS in March said it expected inflation to inch up to around 9 percent this year, from its January forecast of 8.78 for 2015, following a currency devaluation meant to counter the impact of lower revenues from crude oil, Nigeria’s main export.