"The rise in food inflation was caused by increases in prices of oil and fat, bread and cereals, potatoes, yam ... fish, fruits, meat, vegetable and food products," the National Bureau of Statistics said in its inflation report. Policymakers have linked inflationary pressures to Nigeria's infrastructure problems and the fact that a lot of items people consume are imported. Central Bank of Nigeria (CBN) Governor Godwin Emefiele has said the bank will maintain a hawkish stance on rates if inflation remains elevated. The bank holds a monetary policy meeting next Tuesday. The CBN hiked its key interest rate to 17.5% in January, meaning there have been 600 basis points of rate hikes since last May. (Reporting by Chijioke Ohuocha Editing by Alexander Winning and Mark Potter)
Reuters Messaging: chijioke.ohuocha.thomsonreuters@reuters.net)) (Adds food inflation, quote)
By Chijioke Ohuocha
ABUJA, March 15 (Reuters) - Nigeria's inflation picked
up again in February, hitting 21.91% in annual terms from 21.82%
in January, the statistics agency said on Wednesday.
Inflation rose in Africa's biggest economy for 10 straight
months last year, prompting a string of interest rate hikes from
the central bank. The pace of price increases dipped in December
but started to rise again in January.
Food inflation, which accounts for the bulk of Nigeria's
inflation basket, rose to 24.35% in February from 24.32% in
January.
High inflation, weak economic growth and mounting insecurity
were major issues at last month's election, where the ruling
party's candidate won in a poll marred by low voter turnout,
logistical failures and disruption to voting in some places.
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