Nigeria’s inflation rate climbed for 16th consecutive month in April

BREAKING NEWSMay 15, 2024 at 4:26 PM UTC

TLDR

Nigeria's inflation rate increased for the 16th consecutive month in April due to a threefold rise in electricity tariffs and higher transport costs.
Consumer prices rose by 33.7% in April compared to 33.2% in the previous month, marking a significant annual increase.
The acceleration in inflation raises the possibility of another interest rate hike by the central bank to control price growth and strengthen the naira.

Nigeria’s inflation rate climbed for a 16th consecutive month in April, driven by a threefold increase in electricity tariffs and higher transport costs. Consumer prices rose 33.7% in April from 33.2% a month ago.

Annually, the inflation rate was 11.47% points higher than in April 2023, which stood at 22.22%. This indicates that the headline inflation rate has risen significantly over the past year.

The acceleration raises the prospect of another interest rate hike when the central bank’s monetary policy committee meets next week. It’s already lifted borrowing costs to a record high to curb price growth and boost the naira.

Key Takeaways

The Central Bank's interest rate hike to 24.75% in March, aimed at curbing inflation, is proving effective, as recent data shows a notable surge in foreign inflows, reaching $2.3 billion in February. This increase is attributed to renewed interest from foreign investors and higher overseas remittances. Impressively, inflows for Q1 2024 surpassed the total for 2023, signaling growing confidence in Nigeria's economic outlook amid efforts to stabilize the financial landscape. Governor Olayemi Cardoso anticipates inflation to ease by May, aligning with the next monetary policy meeting.

Inflation

Interest Rates

Nigeria

Economy

Foreign Exchange

Consumer Prices

CBN