Nigeria’s inflation rate tops 18.5% in November 2016

By Staff Writer | Nairametrics December 15, 2016

Nigeria’s inflation rate has accelerated for the 13th consecutive months as the economy of Africa’s most populous nation continues to grapple with lower oil price and shortages of dollars.

Inflation for the month of November was 18.50 percent compared with 18.30 for the month of October.

Inflation spiked on the back of higher price of imports, caused by a severe shortage of dollars.

The Apex bank’s decision to peg the currency at N197-N199 for 15 months worsened the dollar scarcity while investors fled for fret of that a sudden devaluation would lead to loss of significant investment.

Despite central Bank’s adoption of a flexible exchange rate with a view to enhancing liquidity in the system, companies still bemoan currency shortage.

Nigeria’s economy contract by 2.2 percent in the third quarter while the IMF forecasts economic output will shrink by 1.7 by 2016.

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