Nigeria’s inflation rises to 11.23%

The Consumer Price Index (CPI) which measures inflation increased in Nigeria by 0.09 per cent to 11.23 per cent (year-on-year) in August compared to 11.14 per cent in the preceding month, the National Bureau of Statistics (NBS) said on Friday.

This is the first year-on-year rise in headline inflation after 18 consecutive disinflation in the index.

The slight jump, from 11.14 percent in July to 11.23 per cent in August, curtails an 18-month run of falling rates from a peak of 18.72 per cent in January 2017, as President Muhammadu Buhari’s administration battled to keep inflation under control.

Food prices rose 13.16 per cent over the previous year, versus 12.85 per cent in the previous month.

Analysts are of the view that the  main factor to watch is “when and by how much pre-election spending kicks in, pressuring inflation,” said Razia Khan, Standard Charter’s chief economist for Africa.

“For now, we don’t see it in core inflation,” she said.

It will be noted that Nigeria will hold elections in February and March 2019. The months running to the elections are a time of heavy spending as politicians campaign and the government tries to complete projects.