By MacDonald Dzirutwe
LAGOS (Reuters) – Nigeria’s inflation rate rose for the seventh consecutive month to 20. 82 Percentage for August, the Bureau of Statistics said Thursday ahead of next week’s central bank interest rate decision.
Central banks meet on Tuesday to decide interest rates in Africa’s largest economy. It has previously said that if inflation remains high, it will continue to raise interest rates.
Refinitiv data shows that year-on-year inflation in Nigeria remains at its highest level since September 2005. The National Bureau of Statistics’ August consumer price index rose by 1.77% month-on-month, compared with 1.77% in July, statistics said.
Food inflation accelerated to 23. 02% from
.02% last month because Nigerians Continue to face rising prices for staples such as rice and bread.
Diesel prices have soared this year due to high global oil prices, leading to higher electricity costs for citizens, while a weak naira currency in parallel markets has made some imports expensive.
Inflation in Nigeria has been in double digits since , partly due to a weak naira.
“In Nigeria, inflation is driven by several factors, but the most important factors are currency pressure and diesel prices,” the financial derivatives firm said in a note to investors said in.
Nigerians head to polls to choose President Muhammadu Buhari’s successor in February, with rising inflation and economic conditions seen as major issues for voters .
Nigerian policymakers insist that deflationary pressures are structural, mainly from imports.