May Inflation Report: No relief for Nigerians as prices rise further

Consumer prices rose 22.41% in the year through May, the highest pace in 18 years.

The rise was higher than 22.22% recorded in April, the National Bureau of Statistics said.

– Why this matters

The new data offers evidence that Nigerians are continuing to battle high prices and that things are bound to get worse with the government’s removal of petrol subsidy and the devaluation of the naira on Wednesday.

Both economic measures – expected to help revitalize an economy weighed down by high debt, low government revenue, unemployment and low foreign investments – are expected to push prices even higher.

Last month, the Central Bank of Nigeria raised its key interest rate by 0.5 percentage points to 18.5%, highest level in at least a decade as it continued to battle rising prices.

The new inflation rate means the monetary authority may raise interest rates even further.

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The statistics office said Thursday that food and non-alcoholic beverages contributed to most to the headline inflation. Food inflation was 24.82% from 24.61% in April.

“The rise in the food inflation on year-on-year basis was caused by increases in prices of oil and fat, yam and other tubers, bread and cereals, fish, potatoes, fruits, meat, vegetable, spirit,” it said.

If the prices of volatile farm produce were taken out, the prices of the remaining items categorized as core inflation, stood at 20.06% in May, with gas and air transport fare rising the fastest.

Prices rose at the fastest pace in Ondo, Kogi and Rivers states, and slowest in Taraba, Sokoto and Plateau.