Naira drops against dollar as inflation hits 17.6%

The Naira on Friday depreciated in most major segments of the foreign exchange market just as inflation hits 17.6 percent. The Nigerian currency fell by N2.24 to exchange at N308.69 to the dollar at the interbank market, from N306.93 recorded on Thursday.
At the Bureau De Change it closed at N420 to the dollar, N550 to the Pound Sterling and N465 against the Euro.
At the parallel market, naira lost N2 to close at N425 against the dollar from N423 it traded on Thursday, while it exchanged at N545 and N470 against the Pound Sterling and the Euro, respectively.
Traders at the market said that in spite of the reduction in the rush for the greenback to meet up school fees payment, the naira continued to depreciate.
They said that the demand for dollars for importation far outstripped its supply.
Meanwhile, the National Bureau of Statistics has said the Consumer Price Index which measures inflation increased year-on-year from 17.1 per cent in July to 17.6 per cent in the month of August.
Data released by the NBS late in August had showed that the CPI rose by 0.6 percentage points from 16.5 per cent in June to 17.1 per cent in July.
The Bureau had in its August report attributed the increase to high energy prices which it added impacted negatively on the index. It said despite the fact that the country was in a period of harvest, it had yet to feel the impact as food prices was still on the increase.
“In July the Consumer Price Index which measures inflation increased by 17.1 per cent (year-on-year), 0.6 percentage points higher from the rate recorded in June (16.5 per cent),” the report had read in part.
“The pace of the increase in the headline index was however weighed upon by a slower increase in three divisions; health, transport and recreation and culture divisions.”