Monday, April 15, 2024

Rising cost of transportation, food raises inflation in June – NBS

The National Bureau of Statistics, on Monday, said that Nigeria’s annual inflation accelerated to 16.5 per cent in June, its highest in almost a decade and the fifth monthly increase in a row.
According to the NBS, the rise reflected higher prices for electricity, transport and food, a separate index, which rose to 15.3 per cent from 14.9 per cent in May.
“In June, the consumer price index, which measures inflation continued to record relatively strong increases for the fifth consecutive month,” it said.
  Nigeria has seen revenues plunge with oil prices, and with pressure on the naira currency helping to fuel inflation.
The naira hit 295.25 in thin trade, a month after the Central Bank of Nigeria caved in to months of pressure to remove its currency peg and effectively devalue the unit in response to falling prices for oil.
  Investors have welcomed the currency float but many are still steering clear until the country shows signs of recovering from damage inflicted by the 16-month exchange rate peg.
   However, at the Nigerian parallel market, the naira fell to its lowest level since the start of the new foreign exchange regime, trading at 363/$ and 485 to the pound.
   The naira, which began trading at around 283 to the dollar at the interbank market, depreciated to 284/$ to become the third worst performing currency in the world for 2016.
   The Euro traded above N390 in Lagos and under 380 in the nation’s capital, Abuja.
In 2016, the naira has lost 29.61 per cent of its value on the official market, following the decision of the CBN to allow for a floating foreign exchange regime.
   The CBN remains “reasonably optimistic” that the naira would eventually settle at 250 to the dollar at the interbank market.
  The local currency has been on the downward swing, following a plunge in crude oil prices and a consequent decline in Nigeria’s foreign reserves.

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