Nigeria’s food inflation figures declined for the first time in several months, latest figures released 16 January from the National Bureau of Statistics show.
The food inflation sub-index of the inflation measurement declined from 20.30 percent to 19.42 percent in December, a still uncomfortably high figure which analysts say shows that Nigerians are still under pressure from rising food prices.
Bread and cereals, potatoes, yams, and other tubers, coffee, tea and cocoa, milk, cheese and eggs, oil and fats as well as fish are all food items that witnessed the highest increase in prices in December, a period, which coincides with the Christmas, and New Year celebrations, which may have had an impact on prices.
Despite the continuous rise in the food inflation in the country, headline inflation declined for the 11th month in a row in December, to 15.37 percent from 15.90 percent a month in November. The declining inflation rate would be good news for the government in a pre-election year. Core inflation, also dropped from 12.20 percent to 12.10 percent giving room to the Central Bank of Nigeria to make a move on interest rates at its next meeting next week, if it holds.
In October, Central Bank Governor Godwin Emefiele said he expected inflation rates to fall at a faster pace and reach the high single-digits by the middle of 2018.
The bank has kept its main interest rate at 14 percent for over a year now as it battles inflation and seeks to attract foreign investors to support the naira currency.
The government wants to see rates come down to lower its borrowing costs and stimulate the economy.
Nigeria emerged from its first recession in 25 years in the second quarter of 2017 as oil revenues rose, although the slow pace of growth suggests the recovery remains fragile.
