Nigeria’s inflation nears 40% on back of higher food prices

Higher food prices triggered a surge in the inflation rate to 33.9% in Nigeria in October, up from 32.7% a month earlier, the national statistics agency said.

The jump was attributed to a steep rise in the prices of staples such as maize, rice, and cooking oil, the agency said.

In a bid to tame inflation, the central bank had risen its key rate five times consecutively. The new surge could trigger more monetary tightening.

The outlook does not bode well with projections of falling oil and gas prices after Trump won elections.

Trump has promised to put additional supply on the market to lower energy prices, including shale gas and oil amid climate skepticism.

In August, Nigeria was rattled by protests over the high living cost, exacerbated by the Naira currency float.

The float left the naira’s value determined by the market causing higher inflation rates as the cost of imports has risen. This has affected the prices of goods and services, putting pressure on consumers.