Nigerian inflation accelerated for the 12th consecutive month in October as exchange-rate pressures persisted on the prices of goods and services, complicating the central bank’s task of supporting an economy forecast to contract this year.
The inflation rate in Africa’s most populous country rose to 18.3, the highest in 11 years, according to central bank data, from 17.9 percent in September, the Abuja-based National Bureau of Statistics said in an e-mailed statement Monday. Prices rose 0.8 percent from the previous month. The October inflation rate was in line with the median of 12 economist estimates compiled by Bloomberg.
Inflation has been accelerating partly due to dollar shortages caused by the plunge in the price of crude, Nigeria’s main export, since mid-2014. That pushed up import costs for consumer goods and machinery. The government has struggled to manage the economic fallout, at one point pegging the exchange rate for more than a year and recently using law enforcement to bring down the street price of dollars. Read more