• Tuesday, June 25, 2024
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Nigeria’s June inflation rises marginally despite hike in petrol prices

Nigeria’s inflation woes: A perfect storm of internal and external pressures

Nigeria’s headline inflation rate accelerated marginally for the sixth consecutive time to 22.79 percent in June, according to data by the National Bureau of Statistics (NBS) released Monday.

The inflation rate in Africa’s biggest economy rose to a new 17-year high of 22.79 percent in June 2023 from 22.41 percent in the previous month.

Analysts had projected that the country’s headline inflation would see a jump in the June index, owing to the fuel subsidy removal and recent naira devaluation.

“The increase in energy costs is beginning to reflect in the prices of transport and food, contributing to inflationary pressures and raising inflation expectations,” analysts at Financial Derivatives Company Limited, led by economist Bismarck Rewane said in their latest economic bulletin.

President Tinubu announced the removal of the petrol subsidy upon his inauguration into office. Barely three hours after the speech, has fuel priced across the country surged by an average of 174.6 percent from their then price a month ago.