ABUJA, Oct 16 Reuters Nigeria39;s annual inflation rose in September to its highest level in about two decades at 26.72, amid a worsening costofliving crisis in Africa39;s largest economy.

The September inflation rate rose for a ninth straight month from August39;s 25.8, the National Bureau of Statistics NBS said on Monday, with millions of Nigerians impoverished due to the impact of President Bola Tinubu39;s reforms.

Food inflation, making up the bulk of Nigeria39;s inflation basket, rose to 30.64 in September from 29.34 in August.

Tinubu has been under pressure to ease economic hardship after scrapping a decadesold petrol subsidy that tripled prices and allowed the naira to depreciate more than 50, sending prices surging in Africa39;s top oil producer and most populous nation.

The central bank has an unenviable inflation task and will need to respond with aggressive monetary tightening, said David Omojomolo, Africa economist at research firm Capital Economics.

Our expectation is that the inflation picture will continue to worsen. The impact of the removal of fuel subsidies will continue to push up on inflation while the nairas devaluation will also continue to feed through, he said.

Inflation in Nigeria has risen to doubledigits since 2016, eroding incomes and savings, and may prompt the central bank to raise interest rates, which are already at their highest in nearly two decades, at its next meeting. Annual inflation is at its highest now since 2005.

The…