Nigerian inflation slowed in September as the central bank tightened the supply of money in circulation and raised a key interest rate in the second half of the month.
The inflation rate fell to 13.6 percent from 13.7 percent in August, the Abuja-based National Bureau of Statistics said in a statement today.
The Central Bank of Nigeria conducted “a lot of mopping up” operations by selling treasury bills, said Pabina Yinkere, an analyst at Access Bank Plc in the commercial hub of Lagos. “This, combined with the hike in the monetary policy rate”, helped to moderate inflation.
The central bank raised its key lending rate by a quarter of a percentage point to 6.25 percent on Sept. 21. Rising wage costs, increased government spending to organize elections and higher food prices are threats to inflation, bank governor, Lamido Sanusi, told reporters after the decision.
Nigeria, Africa’s top oil producer and the continent’s most populous country, is targeting inflation of less than 10 percent, he said.