Bloomberg News

Nigeria Inflation to Slow on Record Rate, Central Bank Says

October 17, 2011

(Adds interest rate and inflation in third paragraph.)

Oct. 17 (Bloomberg) -- Nigeria’s inflation rate may drop below 10 percent in October following a record increase in interest rates and an easing in food prices, Tunde Lemo, deputy governor of the central bank, said.

“The Central Bank of Nigeria is in a tightening mood,” Lemo said in an interview in the capital, Abuja, today. “We will ensure single-digit inflation remains, we expect a good harvest.”

The central bank of Africa’s biggest oil producer raised its benchmark interest rate by 2.75 percentage points to a record 12 percent on Oct. 10 to help boost the naira and curb price pressures. Inflation accelerated for the first time in four months in September, reaching 10.3 percent, the statistics office said on Oct. 14. The central bank aims to keep inflation under 10 percent.

Food prices, which make up about half of the consumer price index, rose 9.5 percent in September from 8.7 percent in the previous month, the statistics agency said last week.

--Editors: Nasreen Seria, Karl Maier

To contact the reporter on this story: Chris Kay in Abuja at

To contact the editor responsible for this story: Gavin Serkin at

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