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Nigeria’s inflation reaches 28-year high in June, suggesting possible peak

The most populous country in Africa had an increase in inflation for the 19th consecutive month in June, with figures up from 33.95% in May

According to the recently released official data, Nigeria’s inflation rate reached a record 28-year high of 34.19% in annual terms in June. However, several analysts speculated that the rate may have peaked because the impacts of the devaluation should start to wear off this month.

The most populous country in Africa had an increase in inflation for the 19th consecutive month in June, with figures up from 33.95% in May.

It happened just a week before the central bank was supposed to make another interest rate announcement, which, following three raises this year, would be carefully monitored.

President Bola Tinubu’s policies, which include cutting back on energy and gasoline subsidies and depreciating the naira twice a year, have increased price pressure.

The largest cost-of-living crisis in decades has befallen millions of people as a result of the measures, hurting the poor.

After calling off an indefinite strike last month, labour organisations met with President Bola Tinubu this week to advocate for a new minimum wage.

According to data released by the National Bureau of Statistics, the largest contributors to inflation in June were still food and non-alcoholic beverages.

Inflation on food increased to 40.87% from 40.66% in the prior month.

Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has declared that the bank will take all necessary steps to control inflation.

The Capital Economics analyst for Africa, David Omojomolo, predicted that inflation would begin to decline soon—likely in July—and fall below 30% by the end of the year.

In a research note, he stated, “We believe that this will pave the way for the CBN to begin considering interest rate cuts in the near future.”

The central bank increased its benchmark lending rate by 150 basis points to 26.25% during its most recent monetary policy meeting in May. It must make a rate decision again by July 23.

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