The annual inflation rate in Nigeria has reached a new high, rising for the 11th consecutive month to 28.2% in November, according to the National Bureau of Statistics. This marks a significant increase from the 21.8% rate recorded in January.
The surge in inflation can be attributed to the rise in electricity tariffs and energy prices, says the NBS. Diesel prices have more than doubled in the past year, while gasoline prices have tripled since the government removed fuel subsidies at the end of May.
Furthermore, food inflation has also seen a sharp increase, jumping to 32.8% in November from 31.5% the previous month. The key factors behind this rise include higher prices for bread and cereals, oil and fat, potatoes, yam and other tubers, fish, fruit, meat, vegetables, as well as coffee, tea, and cocoa.
Another contributing factor to the rising prices is the decision made by the Central Bank of Nigeria in June to allow the national currency to freely float against the U.S. dollar and other global currencies. Consequently, this has led to the devaluation of the Nigerian naira.