Just In: Nigeria's inflation rises to 13.7%

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

A monthly report released by the National Bureau of Statistics, NBS on Thursday said the increase is 0.49 per cent points higher than the (13.22) per cent 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 per cent in September 2020. This is 0.14 per cent rate higher than the 1.34 per cent 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 per cent, showing 0.21 per cent point from 12.23 per cent recorded in August 2020.

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

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

The corresponding twelve-month year-on-year average percentage change for the urban index is 13.07 per cent in September 2020. This is 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.

Food Inflation

The composite food index rose by 16.66 per cent in September 2020 compared to 16.00 per cent 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 per cent in September 2020, up by 0.21 per cent points from 1.67 per cent 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 per cent, 0.26 per cent points from the average annual rate of change recorded in August 2020 (14.87 per cent).

The Core inflation, which excludes the prices of volatile agricultural produce stood at 10.58 per cent in September 2020, up by 0.06 per cent when compared with 10.52 per cent recorded in August 2020.

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 average 12-month annual rate of change of the index was 9.77 per cent for the twelve-month period ending September 2020; this is 0.13 per cent points higher than 9.64 per cent recorded in August 2020.