(Ecofin Agency) - Nigeria presently grapples with a surge in its inflation rate, following near-stability since December 2022 when it stood at 21.34%.

Nigeria's overall inflation rate reached 24.08% in July 2023, up from 22.79% in June 2023, an increase of 1.29 percentage points. The Nigerian Bureau of Statistics (NBS) disclosed the figures in a report it released on August 16, 2023.

The NBS attributed the hike to rising prices of food commodities, including bread, cereals, potatoes, fish, and oil. "The food inflation rate in July 2023 was 3.45%, which is 1.06% higher than the rate recorded in June 2023 (2.40%)," the report noted. Additionally, core inflation reached 2.11%, compared to 0.34% over the period studied.

This inflation resurgence comes after a period of near-stability and is exacerbated by the recent announcement of the lifting of fuel subsidies in May.

Back in July, this year, the Central Bank of Nigeria (CBN) raised its main lending rate by 25 basis points, bringing it to 18.75%. At the time, the Apex bank said it was worried about the impact of recent political decisions on inflation.

Nigeria expects annual overall inflation to stand at 20.1% this year–and estimated economic growth of 3.2%, according to data from the International Monetary Fund.