Nigeria’s inflation rate rises further as food prices surge

Nigeria inflation rate rose further in June 2020 to 12.56% (year-on-year), 0.16% points higher than the rate recorded in May 2020 (12.4%). This is according to the latest CPI report, released by the Nigerian Bureau of Statistics.

The report also showed that composite food index rose to 15.18% compared to 15.04% recorded in May 2020 while Core inflation, which excludes the prices of volatile agricultural produce that stood at 10.13% in June 2020 compared to 10.12% recorded in May 2020.

This rise in the food index was caused by increases in prices of Bread and Cereals, Potatoes, Yam and other tubers, Fruits, Oils and Fats, Meat, Fish and Vegetables.

Meanwhile, Nigeria’s foreign reserves depleted by $454 million from $36.572 billion to $36.118 billion in the 45-day period between 1st June and 15th July, latest data from Central Bank of Nigeria’s website showed on Thursday.

The country’s external reserves have been buckling under pressure since the year began, taking a double whammy of dwindling oil receipts from the recent oil crash and disruption of trade and investment caused by the coronavirus pandemic, which led to sharp fall of $9 billion year to 22nd June.

The apex bank stated in its latest monthly report, that of February 2020, the reserves dipped by 0.4 per cent from $36.73 billion in January to $36.6 billion in February, citing forex market intervention and direct payment pressures.

The proportion of the country’s external reserves as of February was $330 million (0.9 per cent) for federation reserves, $6.6 billion (18.1 per cent) for the Nigerian government and $29.6 billion (81 per cent).