Abuja — Inflation in Nigeria picked up again in January, hitting 21.82% in annual terms, driven by higher food inflation, its statistics agency said on Wednesday.
Inflation had risen in Africa’s biggest economy for 10 straight months, prompting a string of interest rate hikes from the central bank, before a dip to 21.34% in December.
Food inflation, which accounts for the bulk of Nigeria’s inflation basket, rose to 24.32% in January from 23.75% in December.
High inflation, weak economic growth and mounting insecurity are major issues for voters as Nigeria heads for legislative and presidential elections this month.
President Muhammadu Buhari is not running again due to term limits.
“The contributions of items on a class basis to the increase in the headline index are: bread and cereal, actual and imputed rent, potatoes, yam and tuber, vegetable and meat,” the National Bureau of Statistics said in its inflation report.
Policymakers have linked inflationary pressures to Nigeria’s infrastructure problems and the fact that a lot of items people consume are imported.
Central Bank of Nigeria (CBN) Governor Godwin Emefiele has said the bank will maintain a hawkish stance on rates if inflation remains elevated.
The CBN hiked its key interest rate to 17.5% in January, meaning there have been 600 basis points of rate hikes since last May.
*Chijioke Ohuocha; Editing: Alexander Winning & Jan Harvey – Reuters
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