Inflation Soars To 99% In Sudan As Food Prices Rise

A kitchen worker prepares hot meals at Thava Indian restaurant, at The Gardens, for the daily food distribution in an informal settlement in Tembisa, Johannesburg, on April 24, 2020.  Luca Sola / AFP
PHOTO USED TO ILLUSTRATE STORY: A kitchen worker prepares hot meals at Thava Indian restaurant, at The Gardens, for the daily food distribution in an informal settlement in Tembisa, Johannesburg, on April 24, 2020. Luca Sola / AFP

 

Inflation in Sudan jumped to 99 percent because of rising food prices, official figures showed Saturday, more than a year after the country was rocked by protests sparked by bread price hikes.

The inflation rate in April shot up from 82 percent the previous month due to increased prices of grains, meat, milk and bread, according to the Sudanese Central Bureau of Statistics.

Despite Sudan’s political transition, which has raised hopes of more reforms, the economy remains in deep crisis.

Soaring inflation, a scarcity of foreign currency and a huge public debt are among the country’s most pressing challenges.

Many in Sudan still have to queue for hours to buy bread.

A tripling of the price of bread was the trigger for the first street protests against long-time autocrat Omar al-Bashir in December 2018.

The mass demonstrations went on for months before the army deposed Bashir on April 11, 2019.

Last month, Sudanese authorities announced an increase in bread prices, meaning one Sudanese pound (about two US cents) now buys only a 50-gram loaf of bread, compared to one weighing 70 grams previously.

Nigeria Records Highest Inflation Rate In Almost Two Years

Inflation Rate Drops For 14th Consecutive Time
A file photo of some food items at a market.

 

 

Nigeria’s headline inflation rate for March 2020 rose marginally by 0.06 percent points higher than the 12.20 percent rate recorded in February.

The National Bureau of Statistics (NBS) disclosed this in its report released on Tuesday.

According to the report released after a few days delay, the figures rose marginally by 0.06 per cent points to put the Consumer Price Index at 12.26 per cent (year on year) in March, the highest since April 2018.

Similarly, the composite food index rose to 14.98 per cent, largely driven by an increase in basic food prices.

The ‘All items less farm produce,’ also known as core inflation, which excludes the prices of volatile agricultural produce, stood at 9.73 per cent in March 2020.

This represents an increase of 0.3 per cent when compared with the 9.43 per cent recorded in February 2020.

 

Source: NBS

 

The urban inflation rate also rose to 12.93 per cent, while the rural inflation rate moved up to 11.64 per cent, year-on-year in the previous month.

While gathering the data, the NBS noted the lockdown ordered by President Muhammadu Buhari in Abuja, Lagos and Ogun States, to curb the spread of coronavirus in the country.

It also took note of the several disruptions to normal economic activities in several other states which began in April but stated that they did not have any major impact on the March 2020 Inflation which the report focused on.

“The corresponding twelve-month year-on-year average percentage change for the urban index was 12.15 per cent in March 2020 (this is higher than 12.03 per cent reported in February 2020), while the corresponding rural inflation rate in March 2020 was 11.14 per cent compared to 11.09 per cent recorded in February 2020,” the report read.

Inflation Hits 12.20 Percent In February 2020

Inflation Rate Drops For 14th Consecutive Time
A file photo was taken at a food market

 

Nigeria’s headline inflation has recorded yet another rise to 12.20 percent in February, from the 12.13 percent recorded in January the same year.

A report published by the National Bureau of Statistics on Tuesday revealed that food inflation increased marginally Year on Year to 14.90% in January 2020, compared to the figures obtained (14.85%) in January 2019.

Core Inflation also rose to 9.43% in January 2020 compared to the 9.35% figures in January 2020.

Earlier in January data from the NBS showed that food prices forced Nigeria’s inflation for the month to hit 12.13 percent, recording five months of consecutive increase.

READ ALSO: Food Prices Push Inflation Up To 12.13% In January

The increase is 0.15 percent points higher than the rate recorded in December 2019 (11.98 percent).

The report from NBS stated that the composite food index rose by 14.85 percent in January 2020 compared to 14.67 percent in December 2019, and

It revealed that the rise in the food index was caused by increases in prices of Bread and Cereals, Meat, Oils and fats, Potatoes, yam and other tubers and Fish.

“In January 2020, food inflation on a year on year basis was highest in Sokoto (19.08%), Ogun (18.72%) and Nasarawa (17.07%), while Bayelsa (12.91%), Delta (11.57%) and Benue (11.33%) recorded the slowest rise.”

IMF Cuts Nigeria’s 2020 Growth Forecast To Two Percent

 

The International Monetary Fund (IMF) has cut down its 2020 Gross Domestic Product (GDP) forecast for Nigeria to two percent, from the 2.5 per cent it had predicted earlier.

According to the IMF, the cut reflects the impact of lower international oil prices while inflation in the country is expected to pick up.

Data released by the National Bureau of Statistics (NBS) on Tuesday showed that Nigeria’s inflation for the month of January 2020 hit 12.13 percent, recording five months of consecutive rise.

A statement posted on IMF website on Monday said that the review was necessitated after its staff team led by Amine Mati, Senior Resident Representative and Mission Chief for Nigeria, visited Lagos and Abuja recently to conduct its annual Article IV Consultation discussions on Nigeria’s economy.

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Mr Mati stated that the pace of economic recovery remains slow, as declining real incomes and weak investment continues to weigh on economic activity.

“Inflation—driven by higher food prices—has risen, marking the end of the disinflationary trend seen in 2019. External vulnerabilities are increasing, reflecting a higher current account deficit and declining reserves that remain highly vulnerable to capital flow reversals. The exchange rate has remained stable, helped by steady sales of foreign exchange in various windows.

“Under current policies, the outlook is challenging. The mission’s growth forecast for 2020 was revised down to 2 percent to reflect the impact of lower international oil prices. Inflation is expected to pick up while deteriorating terms of trade and capital outflows will weaken the country’s external position,” the statement read in part.

The IMF lauded the Federal Government for taking a number of steps to boost revenue through the adoption of the Finance Bill and Deep Offshore Basin Act and improve budget execution by adopting the 2020 budget by end-December 2019.

However, it maintained that tightening of monetary policy in January 2020 through higher cash reserve requirements in a response to looming inflationary pressures is welcome.

“Major policy adjustments remain necessary to contain short-term vulnerabilities, build resilience, and unlock growth potential.

“Non-oil revenue mobilization—including through tax policy and administration improvements—remains urgent to ensure financing constraints are contained and the interest payments to revenue ratio sustainable.”

The mission reiterated its advice on ending direct central bank interventions, securitizing overdrafts to introduce longer-term government instruments to mop up excess liquidity and moving towards a uniform and more flexible exchange rate.

“Removing restrictions on access to foreign exchange for the 42 categories of imported goods would be needed to encourage long-term investment,” it stated.

Food Prices Push Inflation Up To 12.13% In January

Inflation Rate Drops For 14th Consecutive Time
A file photo taken at a food market

 

Data from the National Bureau of Statistics (NBS) shows that food prices have forced Nigeria’s inflation for the month of January 2020 to hit 12.13 percent, recording five months of consecutive increase.

The increase is 0.15 percent points higher than the rate recorded in December 2019 (11.98 percent).

The report from NBS released on Tuesday stated that the composite food index rose by 14.85 percent in January 2020 compared to 14.67 percent in December 2019, and

It revealed that the rise in the food index was caused by increases in prices of Bread and Cereals, Meat, Oils and fats, Potatoes, yam and other tubers and Fish.

“In January 2020, food inflation on a year on year basis was highest in Sokoto (19.08%), Ogun (18.72%) and Nasarawa (17.07%), while Bayelsa (12.91%), Delta (11.57%) and Benue (11.33%) recorded the slowest rise.”

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On a month on month basis, food inflation was highest in Ondo (2.95%), Anambra (2.61%) and Abuja (2.57%), while Benue, Kogi and River recorded price deflation.

Meanwhile, urban inflation rate increased by 12.78 percent in January 2020, while the rural inflation rate increased by 11.54 percent in the same month in review.

The country’s inflation rate had dropped from 11.40% in May 2019 to 11.02% recorded in August, but the recent rise in inflation started in September with 11.24%.

The Central Bank of Nigeria Governor, Mr Godwin Emefiele, expressed his displeasure at the inflationary pressure but was quick to assure that the trend will witness an immediate turnaround.

In October 2019, it rose to 11.61% which experts believe the rise in inflation rate may be connected to the ongoing border closure which had made it difficult for products to be exported and imported into the country through the land borders.

But NBS noted in its inflation report that the border closure had not started to reflect on the economy as the border was only closed on 20th August 2019

The month of November was no different as it witnessed a third consecutive rise to 11.85 Percent even as the effects of the border closure bit harder on consumer goods.

Again in December, inflation increased by 11.98, higher than the 11.85 percent recorded in November, with composite food index rising by 14.67 percent.

Again, Increasing Food Prices Push Nigeria’s Inflation Rate To 11.98 Percent

 

Nigeria’s inflation increased by 11.98 percent in December 2019, higher than the 11.85 percent recorded in November.

This is due to the rise in the composite food index which rose by 14.67 percent in December.

The consumer price index, (CPI) which measures inflation witnessed a 0.05 percentage change for the twelve months period which ended in December 2019.

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This is according to the National Bureau of Statistics (NBS) CPI and Inflation Report for December 2019.

“The consumer price index, (CPI) which measures inflation increased by 11.98 percent (year-on-year) in December 2019. This is 0.13 percent points higher than the rate recorded in November 2019 (11.85) percent.

“The urban inflation rate increased by 12.62 percent (year-on-year) in December 2019 from 12.47 percent recorded in November 2019, while the rural inflation rate increased by 11.41 percent in December 2019 from 11.30 percent in November 2019.”

 

 

The report stated that the rise in the food index was caused by increases in prices of Bread and cereals, Meat, Fish, Oils and fats, Potatoes, yam, and other tubers.

“The average annual rate of change of the Food sub-index for the twelve-month period ending December 2019 over the previous twelve-month average was 13.74 percent, 0.09 percent points from the average annual rate of change recorded in November 2019 (13.65) percent.”

Food inflation by states on a year on year basis had Sokoto (17.75%), Ogun (17.37%) and Plateau (16.75%) record highest, while Bayelsa (13.26%), Delta(12.72%) and Bauchi (12.19%) recorded the slowest rise.

 

Food Prices Drove Nigeria’s Inflation Rate To 11.85 Percent In November

 

Nigeria’s inflation increased by 11.85 percent in November 2019, due to a rise in the prices of food commodities, gaining 0.24 percent points higher than the rate recorded in October 2019 (11.61) percent.

This is according to the National Bureau of Statistics (NBS) CPI and Inflation Report for November 2019.

“The composite food index rose by 14.48 percent in November 2019 compared to 14.09 percent in October 2019. This rise in the food index was caused by increases in prices of Bread, Cereals, Oils and fats, Meat, Potatoes,
Yam and other tubers, and Fish.”

On a month-on-month basis, the Headline index increased by 1.02 percent in November 2019, a 0.05 percent rate lower than the rate recorded in October 2019 (1.07) percent.

The report also noted that the urban inflation rate grew by 12.47 percent (year-on-year) in November 2019 from 12.20 percent recorded in October 2019, while the rural inflation rate increased by 11.30 percent in November 2019 from 11.07 percent in October 2019.

“On a month-on-month basis, the urban index rose by 1.07 percent in November 2019, down by 0.08 from 1.15 percent recorded in October 2019, while the rural index also rose by 0.98 0 percent in November 2019, down by 0.01 from the rate recorded in October 2019 (0.99) percent.”

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Also, the composite food index rose by 14.48 percent in November 2019 compared to 14.09 percent in October 2019.

The report attributed the rise in the food index to increases in prices of Bread, Cereals, Oils and fats, Meat, Potatoes, yam and other tubers, and Fish.

Analysing the inflationary rates by state, the report noted that all items inflation on year on year basis was highest in Kebbi (15.40%), Sokoto (14.58%) and Niger (14.15%), while Imo (10.43%), Abuja (10.30%) and Kwara (9.70%) recorded the slowest rise in headline Year on Year inflation.

“In November 2019, food inflation on a year on year basis was highest in Sokoto (18.77%), Kebbi (18.08%) and Ekiti (17.18%), while Katsina (12.61%), Bayelsa (12.50%) and Bauchi (12.44%) recorded the slowest rise.”

The percentage change in the average composite CPI for the twelve months period ending November 2019 over the average of the CPI for the previous twelve months period was 11.35 percent, representing a 0.05 percent point from 11.30 percent recorded in October 2019.

Pork Prices Double, As Inflation Rises In China

An elderly man looks at a shop as a vendor waits for customers in Hong Kong on December 6, 2019. Noemi CASSANELLI / AFP

 

Consumer prices in China accelerated at their fastest pace for almost eight years in November as the African swine fever epidemic caused pork prices to more than double, data showed Tuesday.

The consumer price index (CPI) — a key gauge of retail inflation — came in at 4.5 percent for November, the National Bureau of Statistics (NBS) said, up from 3.8 percent in October and the highest rate since January 2012.

Analysts surveyed by Bloomberg News had forecast an increase of 4.3 percent on-year.

The widespread outbreak of swine fever since August 2018 has disrupted the pork supply in China, sending the prices of the staple meat up 110.2 percent last month November.

With China’s pig herd down by about 40 percent, authorities last week launched a plan to restore pork production to pre-swine fever levels by 2021.

The crisis has also sent prices of beef, lamb and eggs up as consumers switch to other sources of protein.

China’s consumer inflation target for 2019 is around three percent.

The producer price index (PPI) — an important barometer of the industrial sector that measures the cost of goods at the factory gate — showed prices fell 1.4 percent on-year in November.

The figure was slightly higher than the anticipated 1.5 percent decline in a Bloomberg News poll but nevertheless marked five consecutive months of decline, suggesting continued weakness in the world’s second-largest economy.

 

AFP

Border Closure: Inflation To Moderate In Three Months, Says Emefiele

 

The Central Bank of Nigeria Governor, Mr Godwin Emefiele has said that the rise in inflation is temporary and will go down aggressively in another three to four months.

A report by the National Bureau of Statistics (NBS), showed inflation figures at a 17-month high, rise to 11.61% in October.

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Mr. Emefiele in an exclusive interview with Channels Television said that the attribution of the rise to border closure cannot be totally ruled out, but the benefits are more.

“Inflation goes up from 11.22 to 11.61 between September and October, and mainly it’s because of the border closure.

“I am not going to entirely disagree that yes, because of border closure that has resulted in some supply shortages because of goods that are being dumped into the country.

“Who are those benefitting, in as much as I don’t like the fact that prices went up momentarily from September and October, the beneficiaries are Nigerians and companies where we have seen a situation where people have jobs, farmers who produce poultry and those benefitting from import of cars legitimately.”

The CBN Governor expressed his displeasure at the inflationary pressure but was quick to assure that the trend will witness an immediate turnaround.

“In as much as I do not like the fact that the inflationary pressures are coming up right now, I’m also saying that it will moderate and very quickly, maximum of another 3 to 4 months aggressively downwards.”

Inflation Rate Rises To 11.61% In October

PHOTO credit: National Bureau of Statistics

 

Fresh data from the National Bureau of Statistics on Monday shows that Nigeria’s inflation for the month of October has risen by 0.36 basis points year on year to 11.61 percent and also increased month on month to 1.07 percent from 1.04 percent.

The composite food index rose by 14.09 percent in October compared to 13.51 percent recorded in September due to increases in prices of meat, fish, vegetables, bread and cereals, potatoes, yam and other tubers.

According to experts, the rise in inflation rate may be connected to the ongoing border closure which had made it difficult for products to be exported and imported into the country through the land borders

Core inflation, which excludes the prices of volatile agricultural produce eased to 8.88 percent year on year in October compared with the 8.94 percent recorded in September.

The urban inflation rate stood at 12.20 percent year-on-year in October from September’s 11.78 percent, while rural inflation increased to 11.07 percent in October from 10.77 percent in September.

On a month-on-month basis, the urban index rose to 1.15 percent in October from 1.13 percent, while the rural index was slightly higher at 0.99 percent in from 0.96 percent.

Nigeria’s Inflation Rate Drops To 11.22 Percent In June

NBS, Bureau Of Statistics, Inflation Rate

 

 

Nigeria’s inflation eased sharply lower in June to 11.22 percent year on year, a 0.18 percent points decrease than 11.40 percent posted in May.

Latest data released by the National Bureau of Statistics (NBS) on Tuesday showed that the headline index fell to 1.07 percent on a month-on-month basis, indicating a decline of 0.04 percent points from the rate recorded in May.

“The consumer price index, (CPI) which measures inflation increased by 11.22 percent (year-on-year) in June 2019. This is 0.18 percent points lower than the rate recorded in May 2019 (11.40) percent.

“On a month-on-month basis, the Headline index increased by 1.07 percent in June 2019, this is 0.04 percent rate lower than the rate recorded in May 2019 (1.11) percent.”

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The urban inflation rate fell to 11.61 percent year-on-year in the month under review, while the rural inflation rate eased to 10.87 percent from 11.08 percent.

“The urban inflation rate increased by 11.61percent (year-on-year) in June 2019 from 11.76 percent recorded in May 2019, while the rural inflation rate increased by 10.87 percent in June 2019 from 11.08 percent in May 2019.

“On a month-on-month basis, the urban index rose by 1.10 percent in June 2019, up by 0.05 from 1.15 percent recorded in May 2019, while the rural index also rose by 1.05 percent in June 2019, up by 0.02 from the rate recorded in May 2019 (1.07) percent.”

The composite food index stood at 13.56 percent in June, compared to the previous months 13.79 percent as increases were recorded in prices of bread and cereals, meat, fish, vegetables and fruits among others.

“The composite food index stood at 13.56 percent in June 2019 compared to 13.79 percent in May 2019.”

This rise, according to the report, was caused by increases in prices of Bread and cereals, Meat, Oils and fats, Potatoes, yam and other tubers, Fish, Vegetables and fruits.

“On a month-on-month basis, the food sub-index increased by 1.36 percent in June 2019, down by 0.05 percent points from 1.41 percent recorded in May 2019.

“The average annual rate of change of the Food sub-index for the twelve-month period ending June 2019 over the previous twelve-month average was 13.42 percent, 0.05 percent points higher from the average annual rate of change recorded in May 2019 (13.37) percent.”

Nigeria’s Inflation Drops By 0.06% In February – NBS

Nigeria's GDP Falls 2.24% In 3rd Quarter of 2016

 

The consumer price index, which measures inflation level in the country, dropped to 11.31 percent in February 2019 from the 11.37 percent rate recorded in January 2019.

This is according to a monthly inflation data released by the National Bureau of Statistics (NBS), which shows a gradual increase in the price index.

The data highlighted that on a month-on-month basis, the headline index increased by 0.73 percent in February 2019, which is 0.01 percent rate lower than the rate recorded in January 2019 (0.74) percent.

READ ALSONigeria’s Economy Grew By 1.9 Per Cent In 2018 – NBS

The urban inflation rate increased by 11.59 percent (year-on-year) in February 2019 from 11.66 percent recorded in January 2019, while the rural inflation rate increased by 11.05 percent in February 2019 from 11.11 percent in January 2019.

However, the composite food index rose by 13.47 percent in February compared to 13.51 percent in January 2019.

This rise in the food index, according to the released date, was caused by increases in the prices of fish, bread and cereals, potatoes, yam and other tubers, meat, vegetables, oils and fats, and fruits.

In February 2019, food inflation on a year-on-year basis was highest in Nasarawa (16.78 percent), Taraba (16.76 percent) and Abuja (16.29 percent), while Kogi (11.68 percent), Delta (11.51 percent) and Abia (10.81 percent) recorded the slowest rise in food inflation.