By Agency Reporter

Tuesday, 19 Oct 2010

 

Nigeria‘s consumer inflation eased to 13.6 per cent, year-on-year, in September from 13.7 per cent the previous month, the National Bureau of Statistics said on Monday.

Growth in food prices, which form the bulk of the inflation index basket in Africa‘s most populous country, dropped to 14.6 per cent, year-on-year, from 15.1 per cent in August.

The Central Bank of Nigeria unexpectedly raised its benchmark lending rate for the first time in more than a year last month to 6.25 per cent from six per cent, switching its attention from boosting growth to battling inflation.

Higher government spending ahead of elections due next April is likely to keep upward pressure on inflation, which has also risen this year due to an official data revision in August, experts said.

Asked about the interest rate outlook in sub-Saharan Africa‘s second biggest economy, the Governor, CBN, Mr. Lamido Sanusi, told Reuters this month that it would depend on ”where we see inflation going.”

Source: Punch