Rate of general price increases in Nigeria decline to 15.9%—NBS

National Bureau of Statistics (NBS) said that that rate at which prices of goods and services are rising in Nigeria moderated year on year for the seventh consecutive month to 15.9 per cent in October 2021. The decline was mainly supported by the food inflation rate sub-component which eased by 123bps year on year to 18.3 per cent, while core inflation rate moderated 51bps y/y to 13.2%. On a m/m basis, the headline rate slowed 17bps to 1.0%, supported by a 35bps and 45bps decline in both food and core inflation sub-components to 0.9% and 0.8% respectively. This implies that though prices of goods and services are rising but at a slower rate than the previous months.

NBS in its new report said “The consumer price index, (CPI) which measures inflation increased by 15.99 per cent (year-on-year) in October 2021. This is 1.76 per cent points higher than the rate recorded in October 2020 (14.23) percent.  Increases were recorded in all COICOP divisions that yielded the Headline index. On month-on-month basis, the Headline index increased by 0.98 percent in October 2021, this is 0.17 per- cent rate lower than the rate recorded in September 2021 (1.15) percent. The percentage change in the average composite CPI for the twelve months period ending October 2021 over the average of the CPI for the previous twelve months period was 16.96 percent, showing 0.13 percent point from 16.83 percent recorded in September 2021. 

“The urban inflation rate increased by 16.52 percent (year-on-year) in October 2021 from 14.81 percent rec- orded in October 2020, while the rural inflation rate increased by 15.48 percent in October 2021 from 13.68 percent in October 2020. On a month-on-month basis, the urban index rose by 1.02 percent in October 2021, down by 0.19 percent- age point the rate recorded in September 2021 (1.21) percent, while the rural index also rose by 0.95 percent in October 2021, down by 0.15 percentage point the rate that was recorded in September 2021 (1.10) per cent. The twelve-month year-on-year average percentage change for the urban index is 17.53 percent in October 2021. This is higher than 17.41 percent reported in September 2021, while the corresponding rural inflation rate in October 2021 is 16.39 percent compared to 16.26 percent recorded in September 2021”. 

According to the Bureau “The composite food index rose by 18.34 percent in October 2021 compared to 17.38 percent in October 2020. This rise in the food index was caused by increases in prices of Food product n.e.c, Coffee, tea and cocoa, Milk, cheese and eggs, Bread and cereals, Vegetables and Potatoes, yam and other tuber. On month-on-month basis, the food sub-index increased by 0.91 percent in October 2021, down by 0.35 percent points from 1.26 percent recorded in September 2021. The average annual rate of change of the Food sub-index for the twelve-month period ending October 2021 over the previous twelve-month average was 20.75 percent, 0.04 percent points from the average annual rate of change recorded in September 2021 (20.71) percent. The ‘’All items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 13.24 percent in October 2021, up by 2.10 percent points when compared with 11.14 per- cent recorded in October 2020. 

“On month-on-month basis, the core sub-index increased by 0.80 percent in October 2021. This was down by 0.44 percent point when compared with 1.24 percent recorded in September 2021. The highest increases were recorded in prices of Gas, Fuels and lubricants for personal transport equipments, Vehicle spare parts, Non-durable household goods, Solid fuel, Passenger transport by road, Passenger transport by air, Garments, Cleaning, repair and hire of clothing, Major household appliances whether electric or not, Wine, Clothing materials, other articles of clothing and clothing accessories and Liquid fuel. The average 12-month annual rate of change of the index was 12.73 percent for the twelve-month period ending October 2021; this is 0.18 percent points higher than 12.55 percent recorded in September 2021. 

“In October 2021, food inflation on a year on year basis was highest in Kogi (23.69%), Gombe (23.29%) and Jigawa (21.91%), while Edo (13.16%), Rivers (14.46%) and Adamawa (15.42%) recorded the slowest rise in year on year food inflation.  On month-on-month basis however, October 2021 food inflation was highest in Kebbi (2.29%), Yobe (2.23%) and Akwa Ibom (2.16%), while Kano, Kogi, Osun and Oyo recorded price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate)”.