(Ecofin Agency) - In Nigeria, the Consumer Price Index (CPI), which measures inflation, increased by 12.1 pct YoY in January this year, its highest level in 21 months, the National Bureau of Statistics (NBS) revealed.

This figure is higher by 0.15 pct compared to December 2019 when the index increased by 11.9 pct. NBS linked the situation to the closure of the border with Benin which was a gateway for foodstuffs, rice mainly, into the Nigerian market. According to the related document, food inflation in January 2020 rose by 14.8pct, compared with 14.6pct in December 2019.

“This rise in the food index was caused by increases in prices of bread and cereals, meat, oils and fats, potatoes, yam and other tubers and fish,” NBS said. While authorities seem to want to extend the border closure measure until they reach a deal with their neighbors, experts expect inflation to continue to rise. Against a backdrop of rising VAT and electricity tariffs, the consumer price index could remain above the 9% limit set by the country's central bank until the end of the year.

Moutiou Adjibi Nourou