“Electricity Rates, Kerosene Prices, Impact of Higher PMS ” – Inflation In Nigeria Hits 6-year High

The skyrocketing prices of goods and services across the country have reflected in Nigeria’s inflation rate climbing to a near six-year high of 13.7 percent in April, 0.9 percentage point higher than the previous month’s level of 12.8 percent.

The cost-push inflation is driven primarily by the severe scarcity of petroleum products, which had forced increases in transportation cost and consequently, arbitrary increases in cost of all other commodities and services consistently for several months now.

National Bureau of Statistics, NBS, in a report yesterday, said the April inflation reading, the highest level since August 2010, reflected increases across all sectors, unlike the previous months which had one or two sectoral exceptions.

“Lingering structural constraints continue to manifest spill-overs in April as electricity rates, kerosene prices, the impact of higher PMS (petrol) prices and vehicle spare parts were the largest contributors to the core sub index during the month,” NBS stated.

These items, as well as other imported items, according to NBS, continued to have ripple effects across many divisions that contribute to the core consumer price index. Fish, vegetables Food index reflected tighter supplies across most groups that contribute to the sub-index.

The sub-index increased by 13.2 percent in April, up by 0.4 percentage point from March as all major food groups increased at a faster pace driven by higher prices in fish, bread/cereals and vegetables groups.