BTA2023 In September, Nigeria’s annual inflation rate rose for the first time in three months, fueled by higher gasoline prices and severe flooding in food-producing areas.
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Consumer prices increased by 32.7% from 32.2% in August, according to a statement posted on the National Bureau of Statistics‘ website on Tuesday. The median forecast of nine analysts in a Bloomberg study was 32.4%.
Food inflation accelerated to 37.8% in September, up from 37.5% the month before. Core price increase, excluding agricultural produce and energy, fell to 27.4% from 27.6%.
The Central Bank of Nigeria raised its benchmark interest rate by 50 basis points to 27.25% last month in a preemptive effort to dampen the impact of pricing pressures on inflation, and it may raise it again when the monetary policy committee meets on November 25-26.
During last month’s meeting, Governor Olayemi Cardoso stated that “efforts must be sustained” to reach a positive inflation-adjusted interest rate in order to encourage investment into the economy and strengthen the naira.
Nonetheless, Bismarck Rewane, CEO of consultancy Financial Derivatives Co., warned ahead of the data release that while “the upward reversal in the inflation trend will be a major consideration at the MPC meeting in November,” the MPC may choose to retain the status quo. “This is to prevent the economy from overheating and a possible recession.”
