Nigerian inflation has continued on a rising trend, increasing by 13.71 percent (year-on-year) in September 2020.
A monthly report released by the National Bureau of Statistics, NBS on Thursday, October 15, 2020, said the increase is 0.49 percent points higher than the (13.22) percent rate recorded in August 2020.
According to the report, the rise in inflation is as a result of increases recorded in 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.
It also indicated that the increases were recorded in all Classification of Individual Consumption According to Purpose, COICOP, divisions that yielded the Headline index. On a month-on-month basis, the Headline index increased by 1.48 percent in September 2020.
This is a 0.14 percent rate higher than the 1.34 percent rate recorded in the previous month.
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 the 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).
The corresponding twelve-month year-on-year average percentage change for the urban index is 13.07 percent in September 2020. This is higher than 12.85 percent reported in August 2020, while the corresponding rural inflation rate in September 2020 is 11.86 percent compared to 11.66 percent recorded in August 2020.
Food Inflation
The composite food index rose by 16.66 percent in September 2020 compared to 16.00 percent in August 2020.
This rise in the food index was caused by increases in prices of Bread and Cereals, Potatoes, yam, and other tubers, Meat, Fish, Fruits, and Oils and fats.
On a 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.
The average annual rate of change of the Food sub-index for the twelve-month period ending September 2020 over the previous twelve-month average was 15.13 percent, 0.26 percent points from the average annual rate of change recorded in August 2020 (14.87 percent).
The Core inflation, which excludes the prices of volatile agricultural produce stood at 10.58 percent in September 2020, up by 0.06 percent when compared with 10.52 percent recorded in August 2020.
On a month-on-month basis, the core sub-index increased by 0.94 percent in September 2020.
This was down by 0.11 percent when compared with 1.05 percent recorded in August 2020.
The average 12-month annual rate of change of the index was 9.77 percent for the twelve-month period ending September 2020; this is 0.13 percent points higher than 9.64 percent recorded in August 2020.
Source: Vanguard
