Nigeria’s annual inflation rose to 21.47% in November, up from 21.09% in October. This was in response to rising food prices. The statistics bureau reported on Thursday.
According to NBS, the increase was due to an increase in Christmas demand, increased import costs from the decline in the value of the Nigerian naira, as well as rising production costs.
An independent food price index revealed that inflation was at 24.13% in November compared to 23.72% October. This is despite the fact that Africa’s largest nation still struggles with high staples prices.
According to a NBS report, “Food inflation has been caused by an increase in the prices of bread, cereals, oil, fat and potatoes,…and fish.”
Nigerian policymakers have stated that the persistent inflationary pressures they face are both structural and mostly imported.
According to the government, inflation will remain at double digits and average 17.16% in next year.
Capital Economics’ emerging market economist Virag Forizs said that November inflation data were stronger than anticipated, which means prices may rise even more. The central bank may raise rates in January, she said.
As Nigeria prepares for presidential and legislative elections, high inflation and weak economic growth are key issues facing voters. President Muhammadu Buhari, who is currently serving a term limit, will not be participating in the election.