Bloomberg News

Nigerian December Inflation Slows to 12% as Flood Impact Recedes

January 17, 2013

Nigeria’s inflation rate fell in December for the first time in three months as the effects of flooding that damaged agricultural output began to recede.

Inflation in Africa’s largest oil producer slowed from 12.3 percent in November, the Abuja-based National Bureau of Statistics said today in an e-mailed report. Prices rose 0.8 percent in the month.

Core inflation, which excludes agricultural products, rose 13.7 percent in December from a year earlier, compared with 13.1 percent in the previous month, the second consecutive month in which the measure “deviated from the downward trend it exhibited” since July, the statistics bureau said.

Nigeria’s two biggest rivers, the Niger and the Benue, overflowed their banks last year, killing 363 people between July and October, according to the National Emergency Management Agency. Farming communities along river banks experienced the worst damage.

Food prices, which account for more than half of the consumer price index, rose 10.2 percent in December from a year earlier, down from 11.6 percent in November, the statistics bureau said. Prices rose in October and November from the impact of flooding between July and October, according to the statistics office.

While the risk of accelerating food inflation has been high since the floods, other factors for rising prices include housing, water, electricity and fuel costs, the central bank’s Monetary Policy Committee said in November. The inflation rate was expected to rise in December before easing toward 10 percent in January, Governor Lamido Sanusi said.

The central bank kept its benchmark interest rate unchanged at 12 percent in November to curb inflation and support the country’s currency, the naira.

To contact the reporter on this story: Maram Mazen in Abuja at mmazen@bloomberg.net

To contact the editor responsible for this story: Nasreen Seria at nseria@bloomberg.net


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