Forex Scarcity: Electricity Hike Drive Nigeria’s Inflation to 12.8%

by on April 13, 2016

The Consumer Price Index (CPI), which measures inflation rate of goods and services in the economy, grew to 12.8 per cent March, the National Bureau of Statistics, NBS, said on Tuesday.

Inflation was 11.4 per cent in February.

The bureau said in its latest CPI report that the new index was a reflection of a four-year increasing trend in the prices of goods and services.

The statistics agency said the rising inflation during the month was influenced by the growing fuel crisis and the scarcity of foreign exchange to support the economy.

The bureau said scarcity of FOREX also affected the importation of petrol, while the adjustment in the electricity tariffs nationwide also resulted in a surge of rates.

During the month, the NBS said the highest price increases were recorded in the electricity, furniture and furnishings, passenger transport by road, spare parts and liquid fuels groups.

The higher price level was reflected in faster increases across all divisions which contribute to the index, except the restaurants and hotels division, which increased, although at a slower pace for the second consecutive month.

The NBS said the FOREX supply crisis negatively impacted the prices of imported food and non- food items during the month.

“Food index increased by 12.7%, up by 1.4% points from rates recorded in February,” the NBS said.

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