Inflation Hits 3-Month High of 6.9% in January, Triggering Rate Hike Concerns

• Core inflation edged up to 3.6% in January, a 3-month high, indicating rising prices for general goods and services

• The uptick in core inflation has coincided with a rebound in headline inflation to 6.9% in January

• The rise in inflation has triggered concerns of pressure on interest rates ahead of the CBK's policy meeting to set a new lending rate

• CBK increased the benchmark lending rate steeply in December to 12.5% from 10.5% to address exchange rate impact on prices

• Headline inflation also hit a 3-month high in January due to higher food, electricity, clothing and schooling costs