The Nigerian Bureau of Statistic's latest CPI report shows that Nigeria's inflation rate increased further in June 2020 to 12.56%. The rate of increase in May 2020 was 12.4%, a 0.16% points rise between the two months was recorded owing to restrictions on access to foreign exchange and continued border closures.
According to the report published on NBS's website on Friday, composite food index rose to 15.18% as compared to 15.04% recorded in May 2020, whereas core inflation, which excludes the prices of volatile agriculture produce that stood at 10.13% in June 2020 compared to 10.12% recorded in May 2020.
Among the factors responsible for the acceleration of Nigeria's inflation for ten straight months are, trade restrictions to curb the spread of the coronavirus, clashes between herders and farmers.
A decline in value of the Naira added to food inflation that's already been pushed up by border closures.
The CBN's effort to end official foreign-exchange supply for corn imports to boost local production could increase costs further. This is because it could lead to shortages and drive businesses to access hard currency on the parallel market, where the Naira exchanged hands at 470 per dollar on Thursday, compared with official rates of between 360 and 381.
