Inflation in Nigeria fell to a 12-month low in November, easing pressure on the central bank to raise borrowing prices as the omicron variant spread threatened to stifle economic growth.
Consumer prices rose 15.4 percent from a year ago in November, compared to 15.99 percent the previous month, according to Statistician-General Simon Harry, who spoke to media in Abuja, Nigeria’s capital, on Wednesday. This is the lowest it has been since November 2020. In a Bloomberg poll, nine analysts gave a median prediction of 15.3 percent.
Food-price increase slowed to 17.2 percent in November, compared to 18.3 percent in October, resulting in the decrease in the rate.
While inflation has remained above the central bank’s goal band’s 9 percent barrier for more than six years, the central bank expects price rise to decline after peaking in March. Last month, the bank predicted a big harvest and improved security in northern Nigeria, where an Islamist insurgency has raged for more than a decade, would relieve food supply interruptions.
Ikemesit Effiong, head of research at SBM Intelligence, stated before of the announcement that upward price pressures from Christmas shopping could trigger a bump in December.
“After the pause in December 2021, we expect inflation numbers to continue to decrease in 2022,” he said. “However, as Nigeria enters another election cycle, political spending will dampen this reduction.”
A separate Bloomberg poll of 12 economists predicts that monetary policymakers will begin raising interest rates in the second quarter, rather than the first, as previously expected.