Home Business Nigeria’s headline inflation moderates by 5bps to 18.12% y/y in April 2021

Nigeria’s headline inflation moderates by 5bps to 18.12% y/y in April 2021

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Nigeria’s headline inflation spiked in March 2021 to 18.17%

By Audrey Lotechukwu

MON 17 MAY, 2021-theGBJournal- The latest National Bureau of Statistics (NBS) data shows Nigeria’s headline inflation surprised in April 2021 by declining 0.5% from 18.17% in March to 18.12% Y-on-Y, the first downward trend in 18 months.

On Month-to-Month basis, the headline index also fell to 0.97% in April, 0.59% lower than the 1.56% rate recorded in March 2021.

Urban Inflation also dropped during the period under review to 16.68% year-on-year in April from 18.76% reported in March 2021 while rural inflation fell from 17.60 in March 2021 to 17.57% in April.

On Month-to-Month basis, the urban index clocked 0.99% compared to the 1.60% recorded in March while rural index dropped to 0.95% in April compared to the 1.52% reported in March.

The food index, which has been the major driver in inflation in the past months also trended downwards in April 2021, dropping off by 23bps to 22.72% from 22.95% in March. On Month-to-Month basis, the food sub-index fell to 0.99% in April, 0.91% drop from the 1.90% high in March.

Notably, the highest price increases were recorded in  Bread and cereals, Fish, Potatoes, yam and other tubers, Vegetables, Meat, Milk, cheese and egg, Oils and fats, Soft drinks and Coffee, Tea and Cocoa. On a month-on-month basis, food inflation slowed to 0.99% in April (March: 1.90%).

On the contrary, core inflation was up by 7bps to 12.74% y/y. Pressures were most significant in the prices of Pharmaceutical products, Vehicle spare parts, Hairdressing salons and personal grooming establishment, Garments, Furniture and furnishing, Medical services, Shoes and other foot wears, Motor cars, Major household appliances whether electric or not, Dental services, Hospital services, Non-durable household goods, and Fuel and lubricants for personal transport equipment.

On a month-on-month basis, the core index moderated for the second consecutive month to 0.99% in April (March: 1.06%). 

According to the NBS, all items inflation on year-on-year basis was highest in Kogi State at 24.33% followed by Bauchi at 22.93% and Sokoto State at 20.96% while Abia, Kwara and Katsina recorded the slowest rise in inflation, reporting 15.94%, 15.70% and 15.58% respectively during the month under review.

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