Nigeria's Inflation Climbs To 3 Year High On Food Prices

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Published Jan 19, 2016

Nigeria's inflation rate accelerated to a three-year high in December, increasing by 9.6 percent on an annualized basis, compared with 9.4 percent in November. The country's statistics office said food prices rose in Africa's biggest economy and oil producer, with food price inflation climbing to 10.6 percent from 10.3 percent. Inflation is now at its highest since December 2012 and has been above the central bank's target of 6-9 percent every month since May 2015. The country, which relies on oil for two-thirds of government revenue, has been battered after crude prices fell 42 percent in the last year. Efforts by the central bank to stem the fall of the naira by stopping banks from trading dollars are blamed by some analysts for accelerating inflation by preventing businesses from importing all the items they need to operate.