Analysts at the FDC noted that the flood led to food shortage, adding that this contributed to the end of Nigeria’s inflation moderation. Nigeria’s inflation rate fell for 18 consecutive months until August 2018 when the trend reversed. Inflation rate increased to 11.23 per cent in August from 11.14 per cent in July and further to 11.28 per cent in September. Consequently, it could further push up food prices and the inflation rate. “It is also noteworthy that if food shortages raise inflation, the CBN might be forced to tighten its monetary policy stance, probably through raising interest rates.

Source: Punch November 03, 2018 23:03 UTC