In Africa’s most populated country, Nigeria, Inflation skyrocketed to 16.8% in April, pushed by fuel price increases and accelerating costs for food, including cereals and bread, shows newly released data by Nigeria’s National Bureau of Statistics (NBS).
In March, annual food inflation accelerated to 18.4% from 17.2%, sending the headline rate to almost 16.8%. This rate is the highest in eight months, as per the data released on Monday, 16 May.
The rise in food items and fuel is caused by disruptions in global supply due to Russia’s invasion of Ukraine, say analysts.
As per the sources, wheat prices, a key ingredient in flour and cereals for pasta and bread, have risen over 5% during the weekend and more than 68% year-on-year.
Shortages in jet fuel have led to airline operators increasing fare prices by almost 100% or, in some cases suspending operations as the commodity’s price rose from 190 to 700 naira ($0.46 to $1.69) per litre during the wake of Russia’s invasion of Ukraine.
The rise in inflation means the buying power of Nigerian consumers, some of which lives on a minimum salary of 18,000 naira ($43.35) per month, is being deteriorated, said analyst and head of research at Lagos-based sociopolitical risk advisory firm SBM Intelligence, Ikemesit Effiong.
Effiong said, “Nigeria is not just dealing with increasing inflation. When merged with high levels of unemployment and low growth – public and private – Africa’s largest economy is in the throes of a vast bout of stagflation.”
He further added that increased insecurity around areas of Nigeria and the gradual ramp-up of election spending could also combine to assure that prices will stay high for the rest of the year.
The price of making jollof rice, one of West Africa’s cherished dishes and a common meal around Nigeria, has over doubled in the last five years.
