Businesses raise prices at fastest pace in four months as fuel and transport bite

Nigerian businesses raised their prices in October at the fastest rate in four months, driven mainly by the cost of fuel and transport, according to the latest Stanbic IBTC Purchasing Managers' Index (PMI).

More than 29 per cent of firms surveyed said they had increased the prices they charge. Higher costs for fuel, transport, building materials and food were the main reasons. Manufacturers raised prices the most, followed closely by wholesalers and retailers.

The headline PMI eased to 55.7 from 56.4 in September. Any reading above 50 means business conditions are improving, so the private sector is still growing, only more slowly.

Output and new orders rose for the ninth month running, but firms added staff more slowly than at any point since July. Some firms said they had raised staff pay to help workers cope with living costs.

Businesses remain hopeful, with 46 per cent expecting output to grow over the next 12 months, slightly fewer than in September. For households, the figures suggest prices at the market and the bus stop may keep climbing in the weeks ahead.