Nigeria's inflation rate hits 13.71%

Andrew Cummings
October 16, 2020

Nigerian inflation has continued on a rising trend, increasing by 13.71 per cent (year-on-year) in September 2020.

A monthly analysis of CPI for September 2020 compared with CPI, August 2020, shows that there are six main groups, where respective indices in this month have increased, namely: "Recreation and Culture" by 2.23 percent, "Clothing and Footwear" by 1.55 percent, "Transport" by 1.39 percent, "Restaurants and Hotels" by 0.13 percent, "Furniture and Household Equipment" and "Education" slightly increased (almost stable) by 0.01 percent each.

This is 0.14 per cent rate higher than the rate recorded in August 2020 (1.34) per cent.

A report released by the National Bureau of Statics (NBS) on Thursday, states that increases were recorded in all COICOP divisions that yielded the Headline index. In the meantime, the CPI, or the consumer price index saw quite a phenomenal increase for the fourth month.

This was higher than 12.85 per cent reported in August 2020, while the corresponding rural inflation rate in September 2020 is 11.86 per cent compared to 11.66 per cent recorded in August 2020. On a month-on-month basis, the Headline index increased by 1.48 percent in September 2020.

In September, the spike in prices for non-food stuffs dropped to null in the same year as a 0.1 percent increase a month ago, with travel prices declining while medical and educational prices increased.

Food prices have begun to stabilise after months of huge rises fuelled by the swine fever, which ravaged pig herds across the country and sent the cost of pork rocketing, in turn pushing up demand for other meat.

"On month-on-month basis, the food sub-index increased by 1.88 percent in September 2020, up by 0.21 percent points from 1.67 percent recorded in August 2020".

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Food prices over the given period surged 7.9 percent, while non-food prices remained the same as in August. Sluggish core price gains may signal weak underlying activity in the economy."The deflation risk is still looming", said Raymond Yeung, chief greater China economist at Australia and New Zealand Banking Group.

On a month-on-month basis, the core sub-index increased by 0.94 per cent in September 2020.

This was down by 0.11 per cent when compared with 1.05 per cent recorded in August 2020.

The inflation rate over the first nine months of 2020 amounted to 3.3 percent and is expected to be 3.5 percent this year.

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