Currency in circulation in the country rose from N918 billion to N937 billion, between June and July, the Central Bank of Nigeria (CBN) has reported.

A report on currency circulation pasted on the apex bank's website yesterday indicated that the money in circulation had been on a steady rise since the beginning of the year, except in February, raising inflation rate to double digit level.

In May, according to the report, the total currency in circulation stood at N917 billion with N1 billion rise in June, while in April, the recorded figure was N899 billion.

The recorded difference in upward rise between April and May was N18 billion.

The report said the total currency in circulation stood at N892 billion in March showing a jump of N7 billion between March and April.

In January and February, the circulation was N861 and N867 billion respectively. The difference in increase between February and March was N31 billion, while the difference in decrease between January and February was N6 billion.

CBN governor, Professor Chukwuma Soludo explained that the increase in the amount of currency in circulation was due to the release of $4 billion excess crude proceeds to the states in two tranches in March and June.

According to him, the injection of more currency was as result of government's effort to fully implement the yearly budget by the end of the year and preparations gearing up for end of year festivities. The total currency in circulation, due to end of year festivities last year, rose to N960 billion.

Appraising the economy on Tuesday, Soludo pointed out that the surplus in circulation had resulted in a double-digit inflation, mostly affecting the prices of food. He said the year-on-year inflation rate stood at 12 per cent in June, which is a jump from single digit inflation of 7.8 per cent in March, 8.2 per cent in April and 9.7 per cent in May.

"The increase in the inflation rate was traceable to the sharp rise in prices of food and fuel, particularly diesel.

"Food inflation on a year on year basis was 18.1 per cent in June as against 14.7 per cent in May, '' he said.

The governor warned that the double-digit inflation could remain to the end of the year, if the current condition was maintained.

source: Guardian