Headline inflation in Nigeria edged higher for the third consecutive month, settling at 11.85 percent compared to a year ago, the highest so far in 2019.
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The figure released by the National Bureau of Statistics (NBS) was in line with analysts’ estimate of a higher figure on the back of rising food prices.
On a month on month basis, the headline index settled at 1.02 percent slightly lower than the rate reported in October (1.07%). Core inflation trod a similar path, inching upwards by 0.79% on a monthly basis.
The uptick in inflation will weigh on the upcoming Treasury Bills and Bonds primary market auctions this week as investors are likely to demand higher yields to match rising inflation.
Food inflation was the major driver of the uptick in headline inflation, as a controversial land border closure in August continues to bite back.
“The impact of regulations in the real sector lingered (especially the land border closure), pressuring inflation figures,” analysts at Lagos-based financial advisory firm, Meristem.
Prices of staples continued to rise, pushing the food index upwards by 14.48% compared to 14.09% in October. The increase was spurred by the increase in prices of bread, cereals, oils and fats, meat, yam and fish.
The price increase will further erode the purchasing power of consumers.
