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Inflation in two-month rise to 16.5% 

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The economic woes facing Nigeria seems not to have any sign of abetting as its annual inflation index has perpetually accelerated to 16.5 percent in June, from 14.6 percent in the previous month.

This, according to a data index released today (Monday) by the National Bureau of Statistics (NBS) cuts across all sectors.

This is the highest in almost a decade and the fifth monthly increase in a row, as the crisis in Africa’s biggest economy deepens, following decline in income from its main economic stay – the oil.

Previous attempts by past regimes to rescue the country from the iron grip of a mono economy had not yielded positive result; not even the calls by experts to focus on agriculture, given its vast and rich landscape has been heeded.

That the hike in inflation index has taken its toll in sub-sectors, including food, which recorded a quantum jump, close to 4.5 percent, from 12.5 to 16.5 percent, in the same period, speaksvolumes of the failure of the system to find lasting solutions to the factors militating against food security as Nigeria is said to spend about half of it GDP on food importation.

The jump in inflation, which cuts virtually all sectors, reflectinghigher prices for goods and services throughout the first and second quarters of the year has also not spared the following sectors: electricity and transport.

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In May alone, a separate index, which rose to 15.3 percent from 14.9 percent, said NBS, was seen as a warning sign of what the future would hold for the economy in greater part of the year.

An economist, Mr. Mike Oduyemi of AB& Z, a management consultant, said there is no economy that does not witness a jump in inflation index, adding that what is of concern is the frequency of such a rise within a short period.

But a senior director with NBS put it this way: “In June, the consumer price index, which measures inflation has continued to record relatively strong increases for the fifth consecutive month. It is hoped that policy of government will address the trend”.

With the country witnessing some revenues plunge with oil prices, occasioned by the restiveness of the youth in the oil producing Niger Delta region and with pressure on the naira currency helping to fuel inflation to soar, there economy requires a stronger push to jump start it.

This is evidenced by naira fall against major currencies, hittingN295.25 per dollar, a month after the central bank caved in to months of pressure to remove a currency peg and effectively devalue the unit in response to falling prices for oil.

 

 

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