NIGERIA’S inflation rate has risen to 20 percent above World Bank’s projection of 15.5 percent.
The new trend also defies new Central Bank of Nigeria (CBN) anti-inflationary measures in raising the country’s interest rate.
Explaining that the nation’s inflation rose to 18.60 per cent in June, the highest since January 2017 when it was 18.72 per cent, National Bureau of Statistics (NBS) said urban inflation rose to 19.09 per cent and rural inflation hit 18.13 per cent in June 2022, despite the recent interest rate increase by the Central Bank of Nigeria.
“This means that the headline inflation rate increased in the month of June 2022 when compared to the same month in the previous year (i.e., June 2021). Increases were recorded in all COICOP divisions that yielded the Headline index. On a month-on-month basis, the headline inflation rate increased to 1.82 per cent in June 2022, this is 0.03 per cent higher than the rate recorded in May 2022 (1.78 per cent),” NBS said.
It will be recalled that only recently, CBN raised the nation’s interest rate from 11.5 per cent to 13 per cent in a bid to address inflation in the nation.
According to Central Bank of Nigeria governor, Godwin Emefiele, Monetary Policy Committee had to increase the monetary policy rate by 150 basis points to prevent inflation.
“Six members voted to raise the MPR by 150 basis points, four members’ by 100 basis points and one member, by 50 basis points. Members expressed deep concern about the continued uptrend of inflationary pressure despite the gradual improvement in output growth. Committee notes that the current rise in inflation is inimical to growth and the full recovery of the Nigerian economy,” he said.