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UPDATE 1-Nigeria inflation rises in May, lifted by food and drug prices

Published 17/06/2020, 09:46
UPDATE 1-Nigeria inflation rises in May, lifted by food and drug prices
USD/NGN
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(Adds details)
By Chijioke Ohuocha
ABUJA, June 17 (Reuters) - Annual inflation in Nigeria rose
for the ninth straight month in May, lifted by higher food and
drug prices, the statistics office said on Wednesday, as the new
coronavirus pandemic disrupted logistics and economic
activities.
Inflation, a measure of living costs, climbed to 12.4% in
May, its highest level in more than two years, from 12.34% the
previous month, the National Bureau of Statistics said.
The statistics office said month-on-month increases were
recorded in the prices of pharmaceutical products, medical
services, transport and associated services.
It said that food inflation, which accounts for the bulk of
the inflation basket, climbed to 15.04% in May, compared with
15.03% in April. Food inflation has been in double digits for
more than three years.
Nigeria has had more than 17,000 confirmed cases of the
coronavirus and 455 deaths. Most cases have been in urban areas,
where the brunt of price increases has been felt, especially
imported drugs and foodstuffs.
Rising inflation has caused yields on Treasury bills and
bonds to turn negative, a major stumbling block for the central
bank's push to attract foreign inflows to support the naira
NGN= and boost the economy.
Africa's top oil exporter faces economic hardship from the
coronavirus outbreak and sharp falls in crude prices, which have
caused a steep decline in growth.
Nigeria's government expects the economy to contract by as
much as 8.9% this year.
Central bank Governor Emefiele has said that the economy
could contract in the second and third quarters but recover in
the fourth with the fiscal and monetary policy measures put in
place by the authorities.

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