Inflation in Nigeria increases for the first time in three months

For the first time in three months, Nigeria’s inflation rate increased in September, rising from 32.15% in August to 32.70% in annual terms (NGCPIY=ECI), the statistics agency reported on Tuesday.

After three hikes in the price of gasoline since early September, which have agitated citizens already dealing with the worst cost-of-living crisis in a generation, analysts had predicted that the inflation slowdown in July and August might not last long.

After five rate hikes this year, the central bank may decide to continue its cycle of rate hikes in response to the recent spike in inflation.

On November 26, the Central Bank of Nigeria is expected to make its next rate announcement.

As part of its efforts to end an expensive fuel subsidy scheme that has put a burden on the public budget of Africa’s most populous country, President Bola Tinubu’s government has raised the price of gasoline in Nigeria.

Devaluing the nation’s currency, which is another major factor driving inflationary pressures along with crop damage from floods in areas that produce food, is one of Tinubu’s other policies aimed at boosting economic growth and attracting investment.

Food inflation (NGFINF=ECI), according to data released by the National Bureau of Statistics on Tuesday, increased from 37.52% in September to 37.77% in September, year over year.

The central bank may be able to transition from a rising to an easing cycle early next year if the disinflation process resumes, according to economists, which is anticipated to happen in the upcoming months.