Nigeria's Annual Inflation Rate Hits 28-Year High: 33.95%

Inflation
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Nigeria's annual inflation rate reached a 28-year high of 33.95% in May, aggravating hardships that have triggered public anger against President Bola Tinubu's economic reforms, according to official data released on Saturday.

Inflation increased for the 18th consecutive month, up from 33.69% the previous month.

Tinubu's policies, which include cutting petrol and electricity subsidies and devaluing the naira twice in a year, have fuelled the rise in prices of commodities across the country.

Labor unions, which suspended a strike meant to demand a new minimum wage, have argued that the reforms hurt the poor and have left millions grappling with the worst cost-of-living crisis in decades.

 According to data issued by the National Bureau of Statistics, food and non-alcoholic beverages remained the biggest contributors to inflation in May.

Food inflation, which makes up the bulk of Nigeria's inflation basket, increased to 40.66% from 40.53% the previous month.

The major sources of inflation in Nigeria, according to economists, are high food costs and a weakened naira.

In May, the central bank hiked interest rates for the third time this year in response to ongoing inflationary pressures.

Governor Olayemi Cardoso of the Central Bank of Nigeria has stated that rates will remain high for as long as required to reduce inflation.

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