Nigeria inflation rate increased for the fourth straight months

Nigeria inflation rate increased, for the fourth straight month, to 11.98 percent in December of 2019 from 11.85 percent in the previous month.

The November rate was the highest rate since May 2018.

National Bureau of Statistics said on Friday that consumer prices rose 12% from a year earlier, compared with 11.9% as at November. Costs rose 0.85% in the December.

Also, food-price rate increased to 14.7% in December from 14.5% in the previous month.

The continued surge in food prices may not be unrelated to the shut down of the country’s land borders in August to curb smuggling of goods, especially rice, into Nigeria, and illegal export of petroleum products out of the country.

Nigeria also ban supply of petrol to filling stations within 20 kilometer radius of its borders to stifle smuggling.

Although, central bank Governor God-win Emefiele said in November the impact of the border closures on inflation is temporary.

Nigeria and the affected countries, Niger and Benin, also agreed to establish a joint border police to check the influx of foreign goods into West Africa’s largest market.

The three countries said in a joint communique in Abuja in November that the joint patrol team will comprise “the police, customs, immigration, navy and state security services of the three countries.”

The border closure is hurting the economies of Nigeria’s neighbors, which serves as transit countries for some of the goods meant for the Nigerian market.

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