Nigeria’s inflation (Consumer Price Index Year-on-Year) is mounting a climb since November 2015, and it looks like it might not stop. Nigeria got out of the double-digit inflation rate in December 2012. Since February 2016, Nigeria has fallen back to the dreaded double-digits and has powered on.
The crisis is evident that most businesses have been excluded from the FX window have been sourcing funds at amounts, nearly at over 50% of the official rate. The food index has been in double-digit since June 2015 and has kept a significant part in taking the Consumer Price Index to double-digit rates.
According to the National Bureau of Statistics “These items as well as other imported items continued to have ripple effects across many divisions.”
It has been evident that the core index, which excludes the food index have also the been rising fast. Price of agricultural products such as rice and tomatoes have seen a 100% rise. It seems it is getting tougher in Nigeria.
With the biting effect of the exchange rates on businesses and the squeeze in demand due the conditions of the country, inflation is expected to keep moving in the upward swing. Analysts are already projecting 15% before the year runs out.