Home Business Nigeria’s headline inflation hits 17.33% y/y, Food inflation rose faster by 122bps...

Nigeria’s headline inflation hits 17.33% y/y, Food inflation rose faster by 122bps to 21.79% y/y

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By Audrey Lotechukwu

TUE 16 MARCH, 2021-theGBJournal- The National Bureau of Statistics (NBS) Monday published the Consumer Price Index (CPI) for February 2021.

The data seen by theGBJournal shows that Nigeria’s headline inflation maintained its uptrend, as it rose by 86bps to 17.33% y/y in February 2021 (January: 16.47% y/y), the highest level since February 2017 (17.78% y/y),

The outturn is 18bps higher than Cordros Securities analysts’ estimate of 17.15% y/y, with the largest variance coming from the food basket.

On a month-on-month basis, headline inflation increased marginally by 5bps to 1.54%.

Food inflation rose faster by 122bps to 21.79% y/y in February 2021 (January: 20.57% y/y). Notably, the highest price increases were recorded in Bread and cereals, Potatoes, Yam and other tubers, Meat, Food products n.e.c, Fruits, Vegetables, Fish and Oils and Fats. On a month-on-month basis, food inflation rose by 1.89% (January: 1.83%).

Similarly, core inflation was up by 53bps to 12.38% y/y. Pressures were most significant in the prices of Passenger transport by air, Medical services, Miscellaneous services relating to the dwelling, Hospital services, Passenger transport by road, Pharmaceutical products, Paramedical services, Repair of furniture, Vehicle spare parts, Maintenance and repair of personal transport equipment, Motor cars, Dental services and Hairdressing salons and Personal grooming establishment.

On a month-on-month basis, the core index moderated by 5bps to 1.21% (January: 1.26%).

In February 2021, all items inflation on year on year basis was highest in Kogi (24.73%), Bauchi (22.92%) and Ebonyi (20.45%), while Enugu (14.73%), Kwara (14.25%) and Cross River (12.97%) recorded the slowest rise in headline Year on Year inflation.

On month on month basis however, February 2021 all items inflation was highest in Kogi (3.25%), Ondo (2.46%) and Kebbi (2.43%), while Kwara (0.84%), Kano (0.70%) and Oyo (0.38%) recorded the slowest rise in headline month on month.

In February 2021, food inflation on a year on year basis was highest in Kogi (30.47%), Ebonyi (25.73%) and Sokoto (25.68%), while Gombe (19.32%), Bauchi (18.74%) and Akwa Ibom (18.70%) recorded the slowest rise in year on year inflation.

On month on month basis however, February 2021 food inflation was highest in Kogi (3.34%), Ondo (3.33%) and Ebonyi (3.26%), while Benue and Niger (0.90%), Kano (0.70%) and Oyo (0.09%) recorded the slowest rise in month on month food inflation.

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