ABUJA (Reuters) – Inflation in Nigeria rose for a eighth straight month to 20.77% in September, the statistics bureau said on Monday, despite the central bank’s sharp rate hikes to try to tame price increases.
The central bank has hiked rates by a total of 400 basis points this year, its most hawkish in a single cycle, in an attempt to rein in inflation and ease pressure on the currency.
It hiked its main lending rate to 15.50% in September, its highest level yet.
Refinitiv data showed that year-on-year inflation in Nigeria has remained at its highest level since September 2005. Annual inflation hit 20.52% in August.
Policy-makers in Nigeria maintain that persistent inflationary pressures are structural and largely imported. Analysts say inflation is driven by dollar scarcity, high diesel cost and excess liquidity.
(Reporting by Chijioke Ohuocha; Editing by James Macharia Chege)
