Inflation in Nigeria reached a new high of 17.33 percent following the economic halt caused by the COVID-19 pandemic, a drop in oil sales and prices, and a weakened currency.
Inflation reached a four-year peak in February, sending food prices up 21.79 percent, a jump of 1.22 percent in January, according to the National Bureau of Statistics (NBS).
The NBS report also stated that food staples such as bread, cereals, potatoes, fruits, and oil drove the increase in the food price index.
The country is experiencing “stagflation,” a combination of rising unemployment and prices and low growth which could trigger social unrest.
“Straining households will be compounded by increasing reports of insecurity in some regions, fuelling the risk of broader social discontent,” said Jacques Nel, head of macroeconomic research at NKC African Economics in South Africa. Nel predicts that inflation would remain high in the coming months.
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