Nigeria’s inflation rose for the sixth month in a row in June, to 22.79% year-on-year from 22.41% in May. This may set the tone for more policy tightening measures as the Monetary Policy Committee (MPC) of the central bank is expected to meet to set interest rates next week.
Next week’s meeting of the MPC will be the first since President Bola Tinubu suspended central bank governor Godwin Emefiele in June after promising a “thorough house cleaning” of monetary policy at his May inauguration.
Folashodun Shonubi, one of Emefiele’s deputies is currently acting central bank governor.
According to data from Nigeria’s National Bureau of Statistics, food inflation remains a key driver of the increase in the headline rate.
Food inflation accounts for the bulk of Nigeria’s inflation basket and rose to 25.25% in June from 24.82% in May. Nigerians groan as inflation jumps to 22.79%
Folashodun Shonubi, Emefiele’s deputy (Operations) is currently acting central bank governor.
According to data from Nigeria’s National Bureau of Statistics, food inflation remains a key driver of the increase in the headline rate.
Food inflation accounts for the largest share of Nigeria’s inflation basket and rose to 25.25% in June from 24.82% in May.
Inflation has been in double digits in Africa’s biggest economy since 2016, eroding savings and incomes.
At its last monetary policy meeting in May, the central bank under Emefiele increased its main interest rate by 50 basis points to 18.50%.
Taking to the microblogging platform, Twitter, Nigerians expressed their frustrations over the development. A Twitter user @AbbaM_Abiyos tweeted, “Incredible, and the government cannot even come up with a blueprint on how to revive our economy, reduce the inflation and promote food security. Rather than sharing 8,000 to 12,000,000 vulnerable households in the country, it will further worsen the case.”
Another Twitter user @o_chidex lamented, “Things are getting worst. Nigeria need an administrative Team that understands numbers and statistics to save Nigeria in this situation.not people without master plan”. @kcmazi in his own opinion tweeted, The rise in inflation was expected. Government most understand impact of their actions. Mark this it will increase soonest because of the unified exchange rate .
Nigeria, under the Tinubu-led administration, has embarked on its boldest reform agenda in decades, including the removal of a popular but costly petrol subsidy and the loosening of restrictions on foreign exchange trading, a gamble by Tinubu to try to boost sluggish economic growth.
Analysts had warned that a weaker naira currency and the fuel subsidy removal were likely to push inflation higher in the short term.
