Home Money Higher food prices drive Nigeria’s inflation to 13.71% y/y in September, the...

Higher food prices drive Nigeria’s inflation to 13.71% y/y in September, the highest level since February 2018

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Shoppers queue to shop at a grocery store. Photo: theG&BJournal. 30/03/2020

By Audrey Lotechukwu

THUR, OCT 15 2020-theG&BJournal-Nigeria’s headline inflation expanded by 49bps in September 2020 to 13.71% y/y (August: 13.22% y/y), the highest level since February 2018. The September inflation reading is 0.49 percent points higher than the rate recorded in August 2020 (13.22) percent.

According to the inflation report published today by the Nigeria Bureau of Statistics (NBS), month-on-month Headline index increased by 1.48 percent in September 2020, 0.14 percent higher than the rate recorded in August 2020 (1.34) percent. It is the highest level since June 2017.

The percentage change in the average composite CPI for the twelve months period ending September 2020 over the average of the CPI for the previous twelve months period was 12.44 percent, showing 0.21 percent point from 12.23 percent recorded in August 2020.

The urban inflation rate increased by 14.31 percent (year-on-year) in September 2020 from 13.83 percent recorded in August 2020, while the rural inflation rate increased by 13.14 percent in September 2020 from 12.65 percent in August 2020.

On a month-on-month basis, the urban index rose by 1.56 percent in September 2020, up by 0.14 from 1.42 percent recorded in August 2020, while the rural index also rose by 1.40 percent in September 2020, up by 0.13 from the rate recorded in August 2020 (1.27 percent).

Food inflation rose by 66bps to 16.66% y/y in the period under review. Notably, the highest increases were recorded in bread and cereals, potatoes, yam and other tubers, meat, fish, fruits and oils and fats. From a month ago, food inflation expanded by 1.88%, relative to the 1.67% recorded in the previous month.

Core inflation was up by 6bps to 10.58% y/y. Pressures were most significant in the prices of Passenger transport by air, Medical services, Hospital services, Pharmaceutical products, Passenger transport by road, motor cars, vehicle spare parts, maintenance and repair of personal transport equipment, repair of furniture and paramedical services. Similarly, on a month-on-month basis, the core index was down by 11bps to 0.94%, relative to the 1.05% recorded in the previous month.

All items inflation on year on year basis was highest in Bauchi (17.85%), Zamfara (17.42%) and Kogi (16.66%), while Lagos (11.19%), Abuja (10.59%) and Kwara (10.53%) recorded the slowest rise in headline Year on Year inflation. And on month on month basis, September 2020 all items inflation was highest in Bauchi (3.36%), Kogi (2.63%) and zamfara (2.75%), while Nasarawa (0.66%), Abuja (0.64%) and Ondo (0.31%) recorded the slowest rise in headline month on month inflation.

Food Inflation on a year-on-year basis was highest in Zamfara (20.94%),Kogi (19.06%) and Plateau/Yobe (18.90%), while Nasarawa (13.94%), Lagos (13.87%) and ondo (13.59%) recorded the slowest rise. However, On month on month basis, September 2020 food inflation was highest in Zamfara (3.65%), Anambra (3.19%) and Kaduna (3.15%), while Nasarawa (0.51%) and Abuja (0.15%) recorded the slowest rise with Ondo recording price deflation.

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