Breaking! Nigeria’s Inflation Hits 19.6%; Highest in 17 Years

The National Bureau of Statistics on Monday said Nigeria’s inflation has jumped to its highest level in 17 years but hitting 19.6%.
Majorly responsible for the hike are the cost of bread, cereals, gas, and cost of transportation which have all gone up in the last few months reaching their all time high in 17 years.
Economists had raised concerns over the health of the economy in the last few months even as the Ministry of Finance admitted that the cost of servicing debts now surpasses revenues.
As at June this year, the rate was still 18.6%.
Bloomberg reports that this is the highest level since September 2005 and more than double the 9% ceiling of the central bank’s target band. The median of seven economists’ estimates in a Bloomberg survey was 19.4%.
“The surge may persuade Nigeria’s monetary policy committee to raise its key interest rate for a third successive meeting on Sept. 27. Governor Godwin Emefiele said at the MPC’s July meeting that if inflation continues to accelerate at an aggressive rate it will further tighten monetary policy. The MPC has hiked its interest rate by 250 basis points since May.
“Cost pressures are being fanned by a high import bill caused by surging commodity prices, supply shortages and a slide in the naira to record lows against the dollar that’s prompted the Senate to summon Emefiele to explain the “rapid” depreciation. The naira was little changed against the dollar at 427.85 by 12:26 p.m., local time.
“Annual food-price growth soared to 22% from 20.6% in June and core inflation, which strips out food costs, quickened to 16.26% in July, compared with 15.75% the previous month. Prices rose 1.8% against the previous month,” Bloomberg said in its report on Monday