Nigeria’s February Inflation Rate Rises To 15.70%

 

This file photo shows Broad Street, a commercial hub on Lagos Island

 

Nigeria’s consumer price index, (CPI) which measures inflation has increased to 15.70 per cent for the month of February.

This is according to the National Bureau of Statistics, which disclosed this in their CPI and Inflation Report on Tuesday.

The report states that “this is 1.63 per cent points lower compared to the rate recorded in February 2021 (17.33) per cent,” indicative that the headline inflation rate slowed down in February when compared to the same month in the previous year.

Also detailed in the report, were increases in all COICOP divisions that yielded the Headline index. On a month-on-month basis, the Headline index increased to 1.63 per cent in February 2022, this is a 0.16 per cent rate higher than the rate recorded in January 2022 (1.47) per cent.

“The percentage change in the average composite CPI for the twelve months period ending February 2022 over the average of the CPI for the previous twelve months period was 16.73 per cent, showing 0.14 per cent point from 16.87 per cent recorded in January 2022.”

Concerning the urban inflation rate, an increase to 16.25 per cent (year-on-year) in February 2022 from 17.92 per cent was recorded in February 2021, while the rural inflation rate increased to 15.18 per cent in February 2022 from 16.77 per cent in February 2021.

“On a month-on-month basis, the urban index rose to 1.65 per cent in February 2022, up by 0.12 the rate recorded in January 2022 (1.53) per cent, while the rural index also rose to 1.61 per cent in February 2022, up by 0.19 the rate that was recorded in January 2022 (1.42) per cent.”

“The twelve-month year-on-year average percentage change for the urban index is 17.29 per cent in February 2022. This is lower than the 17.44 per cent reported in January 2022, while the corresponding rural inflation rate in February 2022 is 16.18 per cent which is lower than the 16.31 per cent recorded in January 2022,” the report also said.

Nigeria’s Inflation Rate Drops Further To 17.01% In August – NBS Report

Nigeria’s inflation rate has dropped by 0.37 per cent to 17.01 per cent, the National Bureau of Statistics has said in its latest report.

 

Nigeria’s inflation rate has dropped by 0.37 per cent to 17.01 per cent (year-on-year) in August, from the 17.38 per cent recorded in July.

This was disclosed in the Consumer Price Index report just released by the National Bureau of Statistics.

According to the report, composite food index also dropped to 20.30 per cent against 21.03 per cent in July.

“This rise in the food index was caused by increases in prices of bread and cereals, milk, cheese and egg, oils and fats, Potatoes, yam and other tuber, food products n.e.c, meat and coffee, tea and cocoa,” the report read in part.

At the same time, the country’s urban inflation rate fell to 17.59 per cent year-on-year, from 18.01 per cent recorded two months ago, rural inflation rate tapered to 16.43 per cent from a previous 16.75 per cent, while core inflation, which excludes the prices of volatile agricultural produce dropped by 0.31 per cent to 13.41 per cent in from 13.72 per cent recorded in July.

“The corresponding twelve-month year-on-year average percentage change for the urban index is 17.19 per cent in August 2021. This is higher than 16.89 per cent reported in July 2021, while the corresponding rural inflation rate in August 2021 is 16.03 per cent compared to 15.73 per cent recorded in July 2021,” the report further stated.

Nigeria’s Inflation Rate Declines To 17.75%

A file photo of a food trader at a market in Akure, the Ondo State capital. Sodiq Adelakun/Channels Television
A file photo of a food trader at a market in Akure, the Ondo State capital. Sodiq Adelakun/Channels Television

 

Nigeria’s consumer price index (CPI), a measurement of the rate of change in prices of goods and services, has declined to 17.75% in June from 17.93 recorded in May 2021. 

The ‘Consumer Price Index Report for June’ released by the National Bureau of Statistics (NBS) on Friday, means that the prices have continued to increase in June 2021. However, it was at a slower rate than it did in the last month.

“The CPI measures the average change over time in prices of goods and services consumed by people for day-to-day living,” the NBS noted in its report.

“The construction of the CPI combines economic theory, sampling and other statistical techniques using data from other surveys to produce a weighted measure of average price changes in the Nigerian economy.”

The country’s Headline Index, on a month-on-month basis, moved by 1.06% in June 2021. This figure was  0.05 percentage points higher than what was recorded in May 2021 – pegged at 1.01%.

There was also an increase in the urban inflation rate as it jumped by 18.35 %(year-on-year) in June 2021 from May 2021’s 18.51%. On the other hand, the rural inflation rate moved by 17.16% in June 2021 from 17.36% in May 2021.

The NBS report equally noted that the composite food index increased by 21.83 % in June 2021. This is against the 22.28% reported in May 2021.

The implication is that prices of food rose in the month under review but at a little slower pace than what was recorded in May 2021.

Increases in prices of bread, cereals, yam, and others, drove the food price index.

Deepened Woes Of The Poorest

A file photo of a resident at a market in Akure, Ondo State. Photo: Sodiq Adelakun
A file photo of a resident at a market in Akure, Ondo State. Photo: Sodiq Adelakun

 

Global food prices are rising at their fastest rate in a decade, exacerbating the troubles of the world’s most vulnerable nations as they struggle with the fallout from the coronavirus pandemic.

The United Nations’ Food and Agriculture Organization (FAO) is worried that soaring prices could foment further social unrest in countries already mired in political turmoil.

Where Are Food Prices Headed?

According to the FAO, food prices were nearly 40 percent higher in May than a year ago, the sharpest increase since September 2011.

On a 12-month basis, the price of corn has skyrocketed by 88 percent, soybean by 73 percent, grain and dairy products by 38 percent, sugar by 34 per cent and meat by 10 percent.

“Obviously, it’s very concerning,” said Arif Husain, chief economist of the World Food Programme.

People buy and sell food at the Illaje market, in Bariga, Lagos, on June 29, 2021. Since the start of the pandemic in 2019, food prices have risen by an average of more than 22%, according to official statistics, and feeding a family properly has become a daily challenge. Benson Ibeabuchi / AFP

 

In 2007-2008, brutal increases in the price of basic foodstuffs sparked riots in a number of cities around the world. Peaking in 2010-2011, the price rises acted as a harbinger for the Arab Spring uprisings.

IMF Attributes Nigeria’s Inflation To Forex Challenges

IMF Attributes Nigeria’s Inflation To Forex ChallengesThe International Monetary Fund, (IMF), has blamed the double digit inflation rate in Nigeria on the challenges around foreign exchange.

In a policy paper on Macro-economic developments and prospects in low-income developing countries released at the weekend, the IMF attributed Nigeria’s economic challenges to delayed policy adjustment.

The IMF believes efforts of the Central Bank to defend the Naira by forex rationing, have gradually crumbled, and Nigeria’s financial developments have affected neighboring countries like Chad, which has plunged into a recession, as well as Benin republic.

On the other hand, data from the National Bureau of Statistics, shows that Nigeria’s headline inflation has risen to 18.55 per cent.

That is its highest in more than 11 years.

NBS Commences Survey On Women And Children

NBS, Bureau Of Statistics, Inflation RateAs Nigeria grapples with economic recession, the National Bureau of Statistics (NBS) says it will begin a survey to provide new data on the situation of women and children in Nigeria.

The areas of concern for the agency and its partners include health, education and child protection amongst others.

Nigeria’s Statistician-General, Yemi Kale, explained that the Multiple Indicator Cluster Survey (MICS) is the 5th in the country and will require over 400 personnel to visit more than 35,000 households across Nigeria.

Mr Kale explained in a statement: “MICS can be used as data collection tool in monitoring progress of national goals and global commitments aimed at promoting the welfare of children, including Sustainable development Goals (SDGs).

“In Nigeria, this MICS is the fifth of a series which started in 1995 and has been extended to include questionnaire for individual men and modules such as water quality test.

“It has extended to tobacco and alcohol use, life satisfaction, access to mass media and use of Information Communication Technology.”

He said the survey would strengthen national statistical capacity by focusing on data gathering, quality of survey information, statistical tracking and analysis.

“It will contribute to the improvement of data and monitoring systems in Nigeria and strengthen technical expertise in the design, implementation and analysis of such systems.

“It will also serve as baseline for Sustainable Development Goals (SDG) agenda and provide statistics to complement and assess the quality of data from recent national surveys.

“The recent national survey such as Nigerian General Household Panel Survey (NGHPS) and National Demographic and Health Survey (NDHS) conducted by National Population Commission (NPopC),” he said.

NBS Releases June Inflation Rate

Bureau Of Statistics, Inflation RateNigeria’s headline inflation increased by 16.5% in June from 15.6% in May, as the rate continues to increase for the fifth consecutive month.

According to the National Bureau of Statistics, the 0.9% increase is attributed to a rise in energy costs, imported food items and related products.

During the period, the food index rose at a faster rate of 1.4%, month-on-month due to increase in the prices of meat, vegetables and cereals.

While the urban index also jumped 11.9% in June, the corresponding rural index increased from 10.4% to 10.9%.

Meanwhile, the Nigerian stock market’s benchmark index dropped by 25 basis points to 28,733.90, while the market capitalisation fell by 25 billion naira to 9.86 trillion naira against Friday’s figure, as the market reacts to the country’s June inflation data, and financial markets illiquidity.

However, investors’ appetite for stock remained moderate as a total of 315.5 million shares worth 1.72 billion naira were traded in 3,976 deals at the close of session.

Skye Bank topped the lead of the most actively traded stock with a whopping 138.2 million shares followed by FBN Holdings and UBA.

On the price table, Skye Bank was also the major price advancer in a list of ten, with a 10% increase to its share price, followed by Forte Oil and Nigerian Police Microfinance Bank.

And on the flip side, Law Union and Rock Insurance led 23 other decliners including Wapco and Arbico, down by 8.33%.

MPC Raises Monetary Policy Rate To 12%

MPCThe Monetary Policy Committee (MPC) of the Central Bank of Nigeria has raised the Monetary Policy Rate (MPR) to 12% from 11%.

This is an outcome of its 2-day meeting which started on Monday in Abuja, the nation’s capital; the second for the year 2016.

At the last meeting in January, the MPC maintained the monetary policy rate, the cash reserve requirement, and the liquidity ratio at 11%, 20% and 30% respectively.

The Governor of the central bank said that the key decisions taking by the regulator were part of measures for achieving fiscal and financial stability.

MPC Meeting Begins Next Week

MPC meetingThe Monetary Policy Committee of the Central Bank of Nigeria will hold its second meeting for the year next week.

At the two-day meeting, market watchers expect the increase in the February inflation rate and the issues surrounding the foreign exchange market to top the agenda.

They are also of the opinion that an increase in key rates and adjustment in the exchange rate may reduce speculative demand for foreign exchange.

At the last meeting in January, the MPC maintained the monetary policy rate, the cash reserve requirement, and the liquidity ratio at 11%, 20% and 30% respectively.

The outcome of the MPC meeting will be announced on Tuesday, March 22, 2016.

Inflation Rate Remains Unchanged At 9.6%

inflationNigeria’s inflation rate remained unchanged at 9.6% in the month of January, maintaining the same figure recorded in December, 2015.

According to data released by the National Bureau of Statistics on Sunday, the headline index was weighed down by slower increases in major divisions such as housing, water, electricity, gas, fuel, furnishing and household equipment.

Food inflation remained steady at 10.6% in January compared with the previous month.

During the month, all major food groups which contribute to the food sub-index increased at a faster pace during the month, with the exception of the fruit vegetables.

The NBS also stated in its petrol price watch that Nigerians paid an average sum of 109 Naira 59 kobo per litre for the product in January.

Inflation Rate: FSDH Predicts 9.24% Consumer Price Index

inflationThe National Bureau of Statistics (NBS) is expected to release the inflation rate for the month of January on February 17.

Ahead of the release, analysts at FSDH Research Group are forecasting that the CPI will slow down to 9.24% from 9.55% recorded in December 2015.

The analysts attribute the moderation to the base effect of January 2015 and the drop in commodity prices.

According to FSDH, the price movements in consumer goods and services in January 2016 would increase the composite Consumer Price Index to 181.13 points, representing a month-on-month increase of 0.55%.

Nigeria’s Increasing Inflation Rate To Top Talks At MPC Meeting

Central Bank on inflation rateNigeria’s headline inflation rate, sitting between six per cent and nine per cent at the end of last month presents a challenge for the Central Banks’ Monetary Policy Committee when it meets again in July.

In an investment research report released on Monday by the FBN Capital, the firm said the combination of fuel shortages, higher imported food prices and Naira devaluations in November 2014 and in February this year, would be critical at the next July meeting.

As the Nigerian economy grinds to a four per cent growth in the first quarter, the lowest in three years, some analysts say there are grounds for interest rate easing to stimulate the economy.

The statistics office’s ‘May 2015 Report’ shows the negative impact of both the crunching petrol shortages and the late start of rains on domestic food production on national inflation levels.

MPR At 12% Will Make It Difficult For Nig’s Private Sector To Create Jobs

Financial analyst; Wole Oluwo, has decried the retention of the nation’s Monetary Policy Rate (MPR) by the Central Bank of Nigeria (CBN), at 12 percent saying that a trade off might soon occur from the failure of the regulatory authorities to balance the achievement in other economic indicators such as the exchange rate and foreign reserve with a high interest rate.

Mr Oluwo on Channels Television’s Business Morning, warned that no matter the growth rate of the country, even if Nigeria’s economy is growing at 10 percent, the ordinary man can never feel the impact of such growth except if his business is able to access money via a lower interest rate.

It will also help reduce cost, he added.

He warned of an impending trade-off that can spike the inflation rate which the CBN is closely guiding to be retained at a single digit.

Oluwo ask why the CBN would rather have an economy where inflation rate is at a single digit but the average business owner cannot get a loan at single digit.