Inflation accelerates to 16.5% in June-NBS

The nation’s annual inflation accelerated to 16.5 percent in June, data from Nigeria Bureau of Statistics (NBS) showed on Monday, which is recorded as the highest in almost a decade and the fifth monthly increase in a row, as the crisis in Africa’s biggest economy deepens.

Nigerian inflation accelerated in June and at the highest pace since August 2010, after an increase in gasoline and electricity prices in Africa’s largest economy.

The rise reflected higher prices for electricity, transport and food, a separate index for which rose to 15.3 percent from 14.9 percent in May, the National Bureau of Statistics (NBS) said.

“In June, the consumer price index which measures inflation continued to record relatively strong increases for the fifth consecutive month,” the NBS said.

Nigeria has seen revenues plunge with oil prices, with pressure on the naira currency helping to fuel inflation.

The naira hit 295.25 in thin trade, a month after the central bank caved in to months of pressure to remove its currency peg and effectively devalue the unit in response to falling prices for oil.

Investors have welcomed the currency float but many are still steering clear until the west African country shows signs of recovering from damage inflicted by the 16-month exchange rate peg.