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Inflation: Consumer prices in Nigeria fall for 7 consecutive months Business and Economic News

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The fall in food prices led to a drop in the inflation rate in Nigeria.

Nigeria continues to face the global upward trend in prices, with consumer prices lower for the seventh month in a row, government data showed on Monday.

Nigeria’s inflation rate fell to 15.99 per cent in October from the same period last year, and was 0.64 per cent lower than the September reading of the year, the country’s National Statistics Office said.

The fall in the rate was due to easing annual food inflation, as prices fell from 19.5 per cent in September to 18.3 per cent in October.

“Behind the fall in food price pressures are domestic factors; inflation in imported food remained stable, ”Capital Economics Virag Foriz said in a customer statement on Monday.

The downward trend, analysts say, is likely to give the country’s monetary policy makers enough room to keep interest rates stable when they meet next week, a move that could also affect economic growth rather than being forced to raise prices. The largest economy in Africa.

Inflation has exceeded the central bank rate by 6- to 9% over the years. Foriz said that although it is set to continue to fall in the coming months, inflation is unlikely to fall in the range that the central bank is aiming for “soon”.

He added that “increasingly distorted” foreign exchange rules will continue to weigh heavily on the country’s currency, which will “keep inflation in imported goods high.”



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