• Thursday, May 30, 2024
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Nigeria’s inflation rises to 33.69 % in April, heightens rate hike expectation

Nigeria’s stubborn inflation and how government must focus on engineering growth

Nigeria’s annual inflation rate ticked up as expected to 33. 69 percent in April, feeding expectations for a May interest rate hike next week.

According to the National Bureau of Statistics the acceleration in headline inflation for the sixteenth consecutive month was driven by food and non-alcoholic beverages.

Inflation fastened to 33.69 percent in April 2024 from 33.20 percent in March 2024.

Food inflation also rose to 40.53 percent, compared to an increase of 40.01 percent in March 2024.

According to NBS, the rise in Food inflation on a Month-on-Month basis was caused by a rise in the rate of increase in the average prices of Potatoes, Yam & Other Tubers, Bread and Cereals, Fish, Meat, Fruit, coffee, tea, and Vegetables.

The Monetary Policy Committee will be holding its 295th meeting next week and expectations are that it further increase the benchmark interest rate from 24.75 percent to fight soaring inflation.

Standard Bank noted in a recent report that it expected the MPC to increase the MPR further, by 100 bps, when it meets on May 20, as inflation was likely to rise further in April and peak in May, based on the bank’s current estimates.

 

In an interview with the Financial Times, Cardoso indicated that interest rates would stay high for as long as necessary to tame inflation, saying the apex bank had moved decisively to an orthodox policy.