By Enyichukwu Enemanna
A recently released Consumer Price Index (CPI) data by Nigeria’s statistics office, the National Bureau of Statistics (NBS) has indicated that the country’s February inflation rate hit a new 17-year high at 21.91 per cent, 0.09 point higher, than previous month’s 21.82 per cent.
This is attributed to the scarcity of the local currency, the Naira notes in the market owing to the implementation of redesign policy targeted at phasing out the old N200, N500 and N1,000 notes to among other things fight inflation, kidnapping-for-ransom among others.
The unavailability of the redesigned notes despite withdrawal of legal tender status from the old ones crippled small businesses, as Nigerians could not transact, a policy that brought hardship to individuals, families and organisations.
A pronouncement of the Supreme Court the last week which restored the legal tender status of the old naira notes till Dec. 31 however brought relief and succour as businesses have gradually started booming across the country.
The naira notes scarcity drove food inflation from 24.32 per cent in January to 24.35 percent in the reviewed month, while core inflation decreased from 19.16 per cent in January to 18.84 per cent.
According to the NBS, the increase in the price of oil and butter, bread and cereals, potatoes, yams, and other tubers, as well as fish, fruits, meat, vegetables, and other items, is what led to the rise in food inflation.
