Bread, gas push Nigeria’s inflation to eight-month high

Nigeria’s inflation accelerated to an eight-month high in April as the cost of gas and food items such as bread and cereals climbed on the back of surging global commodity prices.

Annual food inflation accelerated to 18.4% from 17.2% in March. The surge sent the headline rate to 16.8%, according to data released by the National Bureau of Statistics’ website yesterday.

Specifically, the pressure was most significant in the prices of bread and cereals, food products, potatoes, yam and other tubers, wine, fish, meat, and oils. On a monthon-month basis, food inflation rose by 2.00%, relative to the 1.99% m/m recorded in the previous month.

Global food prices are climbing as Russia’s war with Ukraine chokes crop supplies, while disruptions to oil supplies are raising energy costs.

Annual core inflation accelerated to 14.2%, compared with 13.9% in the prior month driven by gas and liquid fuel costs. Prices climbed 1.76% against the previous month.

Pressures were most significant in the prices of gas, liquified fuel, cleaning, repair and hire of clothing, clothing materials, other articles of clothing and clothing accessories. Compared to the previous month, the core index increased by 24bps to 1.22% m/m in April 2022.

Nigeria’s monetary policy committee meets next week and is likely to keep the key interest rate on hold as it remains focused on stimulating growth, even as inflation has breached the upper bound of its 6% to 9% target range for almost seven years.