Inflation knocks two African super-economies

Prices rocket

Nigeria has reported a surge in inflation to just under 17% while Botswana's topped a two-year high of 11.2%. Nigeria's Federal Office of Statistics blamed the increases on food price hikes due mainly to the government's deregulation policy that removed subsidies on the price of petrol, diesel and kerosene, and allowed private oil companies to import fuels and fix prices.

Botswana's inflation rise was blamed on the steep increase in fuel prices, knocking on to the cost of imported goods. The jump in inflation raises the probably of another interest rate hike soon. "It would be a token to the market that Botswana is serious about fighting inflation," says analyst Werner Gey van Pittius, "and are trying to manage expectations."

Copyright International Communications Jan 2006
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