Sudan Inflation Soars Above 400% As Discontent Grows

A woman sells spices in the market in the city of Humera, in the northern Tigray Region, the last Ethiopian city south of the border with Eritrea and Sudan on July 11, 2021. (Photo by EDUARDO SOTERAS / AFP)

 

Inflation in Sudan has jumped to more than 400 percent, state media reported on Sunday amid popular discontent over rising prices after a series of IMF-backed economic reforms.

“The annual inflation reached 412.75 percent in June, compared with 378.79 percent in May,” the official news agency SUNA reported, quoting a government statement.

SUNA said the latest spike in the inflation rate was because of price hikes including on food.

Sudan has been going through a rocky transition since the April 2019 ouster of president Omar al-Bashir following mass protests against his rule triggered by economic hardship.

The transitional government installed in August 2019 has vowed to fix the economy which has been battered by decades of US sanctions and mismanagement under Bashir.

In recent months, Sudan scrapped diesel and petrol subsidies and carried out a managed float of the Sudanese pound to stem a rampant black market.

The measures, seen by many Sudanese as harsh, were part of reforms backed by the International Monetary Fund to enable Sudan to qualify for debt relief.

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On Friday the Paris Club, Sudan’s biggest creditor, said it would cancel much of the debt owed to it by Sudan to help draw Khartoum back into the international fold.

That announcement came as part of a wider effort by the IMF to relieve more than $50 billion of Sudan’s debt, around 90 percent of its total, over the next few years.

Late last month, hundreds of people took to the streets in the capital and in other cities across Sudan to demand the government’s resignation over the latest reforms.

AFP

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.

In Lagos, Families Struggle To Survive As Food Prices Soar

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

 

 

Nigerian nutritionist Emiolo Ogunsola stands in front of a dozen new mothers in a Lagos public hospital, listing the basic foods they need to keep their children well-nourished: Eggs, vegetables, and beans among them.

Her pitch is abruptly interrupted. For the mothers listening, even those essentials are increasingly beyond their reach.

“Ma, how can you expect us to buy that, everything is so expensive, there is no money to buy all that,” says one young mother with a child cradled in her arms.

Inflation is rising around the world as the global economy recovers from the coronavirus pandemic, and while Western central bankers say it is only temporary, the soaring prices are having dramatic consequences in countries like Nigeria.

Africa’s most populous nation with 210 million inhabitants, Nigeria competes with India for the largest number of poor in the world.

But battered by the double economic impact of low global oil prices and the pandemic, the World Bank estimates Nigeria’s soaring inflation and food prices pushed another seven million people into poverty in 2020.

Food prices have increased more than 22 percent since the start of the coronavirus crisis, according to official statistics.

For many people feeding the family has become a daily challenge.

“Every day, during a consultation, there are five or seven children that suffer from malnutrition,” says Ogunsola, head of the nutrition department at Massey Street children’s hospital in a district in Lagos Island.

“I bet in a few months or a year, more children will be malnourished.”

Even before the pandemic and the surge in food costs, Nigeria’s nutrition figures were alarming: One in three Nigerian children suffered stunted growth due to a bad diet; one in 10 is wasted.

As a result, close to 17 million children in Nigeria are undernourished, giving the country the highest level of malnutrition in Africa and the second highest in the world.

‘Can’t stand anymore’

Edith Obatuga has six dependents: two of her own as well as four nephews and nieces.

Twenty kilometres (12 miles) from Lagos Island, in Bariga Market, another popular area of Nigeria’s sprawling economic capital, this single mother shops around the stalls, hoping to find an affordable package of spaghetti.

She has already given up on beans, with the price per kilo already up by 60 percent in one year. She also cut portions of rice after a 15 percent rise in prices.

“During the lockdown last year, prices started to go up, and never stopped since. We cannot stand anymore,” says the 43-year-old mother who earns around 50,000 naira or $120 a month selling wood planks.

Obatuga has made adjustments to delay having to cut portions of food from the family meals. First, she left their apartment because she could no longer afford the rent and moved into her late mother’s old house.

“You should come when it’s raining, there is water everywhere, every night we fight mosquitos,” she says.

When her children fall ill, from malaria or typhoid, there is no longer any question of going to the hospital.

“Too expensive,” says the head of the household who now favours traditional remedies: a herbal juice prepared in a plastic container.

Endless cycle

Before the pandemic, Nigerians were already spending 60 percent of their income on food, says Tunde Leye, an economist at SBM Intelligence risk consultancy. But inflation has pushed that higher on average.

“You can bet that today on average people spend more than 60 percent, maybe around 70 or 80 percent of their income on food,” the economist says.

“When people spend that much amount on food they cannot do nothing else, paying for a rent, health care, education.”

Indeed, after giving up on the rent for her house, Obatuga has also been forced to give up paying rent on her shop. She now sells her planks outside her house, far from commercial streets, and her turnover has fallen sharply as she drifts into the endless cycle of poverty.

Nigeria’s inflation is not driven by global factors alone. Each year 40 percent of Nigeria’s total food production is lost or wasted, according to the World Bank.

In Africa’s largest oil producer, corruption is endemic, roads are in dire condition, Lagos port is totally congested, and faulty electricity supplies do not allow food to be stored properly, economist Leye says.

Widespread bandit attacks, ethnic clashes, and kidnappings for ransom in rural areas have added to a sense of “creeping insecurity”, which experts say has kept people from working in the fields in many agricultural regions of the country.

In the centre and the northwest, heavily armed criminal gangs terrorise local populations, looting villages, stealing livestock and kidnappings for ransom — even targeting schools and colleges for mass abductions.

Nigeria’s northeast has been at the heart of a deadly conflict between the army and jihadist groups for more than 10 years, forcing more than two million from their homes.

In these regions, the number of severely malnourished children is peaking, and in some areas has almost doubled in one year.

Lagos, the economic heart of the country, is hundreds of kilometres away.

But at traffic lights in the megalopolis, more and more children are from the north, clinging to car windows, their right hand outstretched towards the passenger. And the other brought to their mouths.

Nigeria’s Headline Inflation Drops To 17.93%, But Food Prices Rise

A file photo of a food trader at a market in Akure, the Ondo State capital.

 

Nigeria’s headline inflation dropped for the second consecutive month in May, but the prices of food have continued to surge.

Latest data published by the National Bureau of Statistics (NBS) on Tuesday indicates that the Consumer Price Index (CPI), which measures inflation, increased by 17.93 per cent (year-on-year) in the fifth month of the year 2021.

While this is 0.19 per cent points lower than the 18.12 per cent recorded in April, increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the headline index.

On a month-on-month basis, the headline index increased by 1.01 per cent in May, representing higher percentage points of 0.04 than the rate recorded in the previous month (0.97 per cent).

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“The percentage change in the average composite CPI for the 12 months period ending May 2021 over the average of the CPI for the previous 12 months period was 15.50 per cent, showing a 0.46 percent point rise from 15.04 per cent recorded in April 2021,” the NBS data titled CPI Report May 2021 read.

Source: NBS

 

Similarly, the urban inflation rate rose to 18.51 percent (year-on-year) in May from 18.68 per cent recorded in April, just as the rural inflation rate stood at 17.36 per cent in May from the 17.57 per cent previously reported.

The urban index rose to 1.04 per cent in May – up by 0.05 per cent points (on a month-on-month basis) – compared to the rate recorded in April (0.99 per cent), while the rural index rose to 0.98 per cent in May – up by 0.03 points – compared to the 0.95 per cent recorded in April.

According to the report, the corresponding 12-month year-on-year average percentage change for the urban index is 16.09 per cent in May – higher than the 15.63 per cent reported in April while the corresponding rural inflation rate in May is 14.94 per cent compared to the 14.48 per cent recorded in the previous month.

 

Food Prices On The Rise

The composite food index, on the other hand, rose by 22.28 per cent in May as against the 22.72 per cent reported in April.

This rise in the food index, the NBS explained, was as a result of increases in prices of bread, cereals, milk, cheese, eggs, fish, soft drinks, coffee, tea and cocoa, fruits, meat, oils and fats, and vegetables.

It disclosed that the food sub-index increased by 1.05 per cent in May from the 0.99 per cent recorded in April, on a month-on-month basis.

“The average annual rate of change of the Food sub-index for the 12-month period ending May 2021 over the previous 12-month average was 19.18 per cent, 0.60 percent points from the average annual rate of change recorded in April (18.58) per cent,” said the report.

Source: NBS

 

The core inflation, also known as ‘all items less farm produce’, which excludes the prices of volatile agricultural produce, stood at 13.15 per cent in May as against the 12.74 per cent recorded in April.

On a month-on-month basis, the core sub-index increased by 1.24 per cent in May 2021, up by 0.25 per cent when compared with the 0.99 per cent recorded in the previous month.

According to the NBS, the highest increases were recorded in prices of pharmaceutical products, garments, shoes and other footwear, hairdressing salons and personal grooming establishments, furniture and furnishing, as well as carpet and other floor coverings.

Others are motor cars, hospital services, fuels and lubricants for personal transport equipment, cleaning, repair and hire of clothing, other services in respect of personal transport equipment, gas, household textile and nondurable household goods.

The average 12-month annual rate of change of the index was 11.50 per cent for the 12-month period ending in May – representing 0.25 per cent points compared with the 11.25 per cent recorded in April.

Nigeria’s Inflation Rate Drops For First Time In 20 Months

Nigeria recorded its first decline in inflation rate in 20 months, a report by the NBS revealed on May 17, 2021.

 

Nigeria’s headline inflation has dropped for the first time in 20 consecutive months, recording 18.12 per cent decrease in April year-on-year from 18.17 per cent reported in March.

The National Bureau of Statistics (NBS) disclosed this in the Consumer Price Index (CPI) April 2021 report published on Monday.

Latest data by the agency revealed that food, urban, and rural inflation also dropped, leaving core inflation on the high at 12.74 per cent which rose due to increases in pharmaceutical products and other items.

“The Consumer Price Index (CPI), which measures inflation increased by 18.12 per cent (year-on-year) in April 2021. This is 0.05 per cent points lower than the rate recorded in March 2021 (18.17) per cent. Increases were recorded in all COICOP divisions that yielded the Headline index,” the report said.

It added, “On month-on-month basis, the Headline index increased by 0.97 per cent in April 2021, this is 0.59 per cent rate lower than the rate recorded in March 2021 (1.56) per cent.

“The percentage change in the average composited CPI for the twelve months period ending April 2021 over the average of the CPI for the previous twelve months period was 15.04 per cent, showing 0.48 per cent point from 14.55 per cent recorded in March 2021.”

According to the NBS, the urban inflation rate increased by 18.68 per cent (year-on-year) in April from 18.76 per cent recorded in the previous month while the rural inflation rate rose by 17.57 per cent in April from 17.60 per cent recorded in March.

On a month-on-month basis, the urban index rose by 0.99 per cent in April 2021, down by 0.61 the rate recorded in March 2021 (1.60), while the rural index also rose by 0.95 per cent in April 2021, down by 0.57 the rate that was recorded in March 2021 (1.52) per cent.

“The corresponding twelve-month year-on-year average percentage change for the urban index is 15.63 per cent in April 2021.

“This is higher than 15.15 per cent compared to 13.99 percent recorded in March 2021, while the corresponding rural inflation rate in April 2021 is 14.48 per cent compared to 13.99 per cent recorded in March 2021,” the report said.

Similarly, the composite food index rose by 22.72 per cent in April compared to 22.95 per cent recorded in the previous month.

The NBS explained that the rise in the food index was a result of the increase in prices of coffee, tea, coca, bread and cereals, soft drinks, milk, cheese and eggs, vegetables, meat, oils and fats, fish and potatoes, yam and other tubers.

The food sub-index also increased on a month-on-month basis by 0.99 per cent in April, down by 0.91 per cent points from 1.90 per cent recorded in March.

Kogi, Bauch, and Sokoto States, according to the report, recorded the highest inflation while Abia, Kwara, and Katsina had the lowest inflation in the month under review.

The latest data by the NBS beat the expectations of economists who had projected a continuous increase in inflation.

Nigeria Records Highest Inflation Rate In Four Years

Nigeria recorded its highest inflation rate in four years, NBS report revealed on April 15, 2021,

 

Nigeria’s inflation rate has continued to rise as the Consumer Price Index (CPI) which measures inflation increased to 18.17 per cent (year-on-year) in March.

This is 0.82 per cent points higher than the rate recorded in February (17.33 percent), which makes it the highest reported in four years since April 2017.

The National Bureau of Statistics disclosed the new figure in its CPI March 2021 report released on Thursday.

Increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the Headline index, the report said.

On a month-on-month basis, the Headline index increased to 1.56 per cent in March, indicating 0.02 per cent points higher than the rate recorded in the previous month which was 1.54 per cent.

The percentage change in the average composite CPI for the twelve months period ending March 2021, over the average of the CPI for the previous twelve months period, was 14.55 per cent, representing a 0.50 per cent point higher than the 14.05 per cent recorded in February.

 

Similarly, the urban inflation rate increased to 18.76 per cent (year-on-year) in March 2021 from 17.92 percent recorded in February.

The rural inflation rate, on the other hand, now stood at 17.60 per cent in March 2021 from the 16.77 per cent reported last month.

The urban index, on a month-on-month basis, rose to 1.60 per cent in March, representing an increase of 0.02 per cent compared to the rate recorded in February, while the rural index also rose to 1.52 per cent in March, up by 0.02 compared to the 1.50 per cent rate that was recorded in the previous month.

According to the NBS report, the corresponding twelve-month year-on-year average percentage change for the urban index is 15.15 per cent in March.

The agency noted that this was higher than the 14.66 per cent reported in February, while the corresponding rural inflation rate in March was 13.99 per cent compared to 13.48 percent recorded in February.

 

It revealed that the composite food index rose to 22.95 per cent in March compared to 21.79 per cent in February.

On a month-on-month basis, the food sub-index increased to 1.90 per cent in March, up by 0.01 per cent points from 1.89 per cent recorded in February.

“This rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, meat, vegetable, fish, oils and fats, and fruits.

“The average annual rate of change of the Food sub-index for the twelve-month period ending March 2021 over the previous twelve-month average was 17.93 per cent, 0.68 percent points from the average annual rate of change recorded in February 2021 (17.25) percent,” the report said.

Wednesday Update: A Peace Tour, New EFCC Boss And Rising Inflation

Good morning.

We are covering a peace tour by Northern Governors, the appointment of a new EFCC boss, and the underlying factors driving inflation in Nigeria.


Four Northern Governors met with Oyo State Governor, Seyi Makinde, on February 15, 2021.

Northern Governors Continue Southwest Tour

The four Northern Governors – Bello Matawalle (Zamfara), Abubakar Bagudu (Kebbi), Abdullahi Ganduje (Kano), and Abubakar Bello (Niger) – who were in Oyo State on Monday attended a farmer-herders stakeholder meeting in Ogun State on Tuesday.

The Governors are seeking ways to douse tensions between the country’s South and North.

“We have to take some drastic measures,” Governor Ganduje said at the meeting, which was also attended by Ogun State Governor, Dapo Abiodun. “Otherwise we are just scratching the problem on the back.”

Traditional and religious rulers from Ogun and Ondo States, representatives of farmers and herders, as well as heads of security operatives in Ogun State attended the meeting.

Context: Tensions have escalated between farmers and cattle herders in the South recently. Many Southerners believe herders, mostly from the North, have taken control of forests, farmlands and are involved in violent crimes such as kidnapping and rape. But the herders say they are also victims of an increasingly volatile security environment.

Simon Lalong: The Plateau State Governor and Chairman of the Northern Governors Forum, after a security meeting in Kaduna, said the North is seeking “matured ways” to resolve the issue.

Femi Gbajabiamila: The House of Representatives Speaker has asked people with large followership to be more circumspect about the information they share and the language used in sharing it.

Related: The Senate is seeking to pass legislation that will impose stiffer punishments for the illegal possession of firearms in the country.


A file photo of the new EFCC boss, Abdulrasheed Bawa.

The EFCC Gets a New General

President Muhammadu Buhari on Tuesday publicly nominated 40-Year-Old Abdulrasheed Bawa as the substantive Chairman of the Economic and Financial Crimes Commission.

The nomination appeared to put a nail to the hopes of ex-EFCC boss Ibrahim Magu of being recalled. Mr. Magu was suspended in July 2020 over allegations of gross misconduct.

His lawyer, Tosin Ajaomo, told Channels Television that Mr. Bawa’s appointment came as a shock.

What Next: Mr. Bawa, who joined the EFCC in 2004, is expected to scale through a Senate confirmation, a feat Mr. Magu couldn’t achieve. Meanwhile, Mr. Magu’s fate remains uncertain.

Clarification: The EFCC, in a statement on Tuesday, said Mr. Bawa has no corruption record.


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

Inflation Goes Through The Roof

The National Bureau of Statistics said the Consumer Price Index, which measures inflation, stood at 16.47% in January, from 15.75% in December.

The January figure is the highest since April 2017.

But Bolanle Agbaje, a research analyst at Financial Derivatives Company is positive the figure could start to decline in the coming months.

“Month-on-month inflation has declined, which is good news in the sense that inflation is moving to a point where it would reach a particular peak and most likely start coming down,” she said.

Meanwhile, food inflation crossed the 20% mark and stood at 20.57% in January from 19.56% in December.

According to Ms. Agbaje, the farmer-herders conflict was a likely contributor to the rising prices of food.

Core Inflation stood at 11.85% in January, from 11.37% in December.

Bitcoin: The cryptocurrency hit new highs on Tuesday as institutional investors catch the FOMO fever.


What else is happening?

Foreign Affairs: President Muhammadu Buhari has inducted 94 new ambassadors and charged them to go out and serve Nigeria with utmost dedication and pride.

Zamfara Explosion: Seven teenagers were feared dead after they picked up an explosive device during their search for firewood in the bush, the State Government said on Tuesday.

PDP: Former Senate President, Bukola Saraki, said Goodluck Jonathan will not defect from the party. Saraki, along with other members of the PDP Reconciliation Committee, met with the former President at his Maitama residence in Abuja on Tuesday.

Lekki Toll Gate: Some rehabilitation work has begun at the site, days after a protest against its reopening was quashed by the Nigerian police.

IGP: A Federal High Court in Abuja has declined to grant an interim injunction that would restrain Mr. Mohammed Adamu from parading himself as the Inspector-General of Police.

The court said that such an injunction can only be considered after the suit challenging the elongation of the IGP’s tenure by President Muhammadu Buhari has been settled.

NIN: The Federal Government has already shifted the deadline for registration twice. But it might have to do so again as Nigerians continue to contend with the limitations of the exercise.

NCDC: Nigeria recorded 1,368 new cases of the coronavirus and 16 deaths on Tuesday, according to the disease control agency.


And that’s it for this briefing. Join me tomorrow.

P.S. Remember Obinwanne Okeke? He has been sentenced to 10 years in prison by a US court for wire fraud,

 

Inflation Hits 16.47%, Highest Since April 2017

This is the highest since April 2017.

 

The National Bureau of Statistics on Tuesday revealed that Consumer Price Index which measures inflation has increased by 16.47% in January 2021.

This is the highest since April 2017.

The report also shows that food prices, food inflation also rose to 20.57 per cent in January while core inflation, which excludes the price of volatile agricultural produce stood at 11.85%.

READ ALSO: Okonjo-Iweala Will Excel In Her New Position As DG WTO – Buhari

“The percentage change in the average composite CPI for the twelve months period ending January 2021 over the average of the CPI for the previous twelve months period was 13.62 percent, representing a 0.37percentage point increase over 13.25 percent recorded in December 2020.

“The urban inflation rate increased by 17.03 percent (year-on-year) in January 2021 from 16.33 percent recorded in December 2020, while the rural inflation rate increased by 15.92 percent in January 2021 from 15.20 percent in December 2020,” NBS said.

The NBS added that the upward movement in food inflation was caused by increases in the prices of bread, cereals, potatoes, yam and other tubers, meat, fruits, oils and fats, vegetables, and fish.

“This rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, Yam and other tubers, Meat, Fruits, Vegetable, Fish and Oils, and Fats.

“On month-on-month basis, the food sub-index increased by 1.83 percent in January 2021, down by 0.22 percent points from 2.05 percent recorded in December 2020,” NBS said.

Core inflation, which excludes the prices of agricultural items, stood at 11.85 percent in January 2021, up by 0.48 percentage points when compared with 11.37 percent recorded in December 2020.

On a year-on-year basis, food inflation was highest in Kogi (26.64 percent), Oyo (23.69 percent), and River (23.49 percent), while Ondo (17.20 percent), Abuja (16.73 percent), and Bauchi (16.37 percent) recorded the slowest rise.

Nigeria’s Inflation Hits 15.75%, Highest Level In Three Years

The inflation rate in Nigeria closed 2020 on a high hitting 15.75 percent in December, its highest level in three years. This is according to statistics released on Friday by the National Bureau of Statistics.

This an increase by 0.86 percent from the 14.89 percent recorded in November last year.

“The consumer price index, (CPI) which measures inflation increased by 15.75 percent (year-on-year) in December 2020. This is 0.86 percent points higher than the rate recorded in November 2020 (14.89) percent,” the NBS revealed in its statistics.

READ ALSO: NYSC Releases Postings For 2020 Batch B Stream II

The spike beats the expectations of analysts at the financial derivatives company who had projected an increase to 15.4 percent, largely driven by forex rationing, output and productivity constraints, higher logistics and distribution costs.

urban inflation also rose by 16.33 percent year on year

 

Data released by the NBS also shows that an increase in food prices pushed the food index higher by 19.56 percent, while core inflation inched up by 0.32 percent to 11.37 percent in December.

“The composite food index rose by 19.56 percent in December 2020 compared to 18.30 percent in November 2020.

“The average annual rate of change of the Food sub-index for the twelve-month period ending December 2020 over the previous twelve-month average was 16.17 percent, 0.42 percent points from the average annual rate of change recorded in November 2020 (15.75) percent,” the NBS statement read in part.

This rise in the food index according to the NBS was caused by increases in prices of Bread and cereals, Potatoes, Yam and other tubers, Meat, Fruits, Vegetable, Fish and Oils, and fats.

Similarly, urban inflation also rose by 16.33 percent year on year, while the rural inflation rate stood at 15.20 percent in December.

In December 2020, all items inflation on year to year basis was highest in Bauchi (19.85%), Edo (18.15%), and Kogi (18.40%), while Lagos (14.05%), Kwara (13.91%), and Abia (13.30%) recorded the slowest rise in headline year on year inflation.

Food Prices Increase As Nigeria’s Inflation Hits 14.89%

Food items on display in the market.

 

Nigeria’s headline inflation has increased for the 15th consecutive month to 14.89% in November 2020, from 14.23% in October.

The report which was released on Tuesday by the National Bureau of Statistics (NBS) also shows a spike in food inflation which jumped to 18.30% in November from 17.38% the previous month, while core inflation declined to 11.05%.

The statistics office attributes the rise in the food index to increases in prices of major food commodities including potatoes, yam, and other tubers, as well as fruits and vegetables.

READ ALSO: World Bank Finally Approves $1.5billion Loan To Strengthen Nigeria’s Economy

Urban inflation was up to 15.47% while rural inflation was seen at 14.33% also in the month of November.

“The urban inflation rate increased by 15.47 percent (year-on-year) in November 2020 from 14.81 percent recorded in October 2020, while the rural inflation rate increased by 14.33 percent in November 2020 from 13.68 percent in October 2020,” the report read.

“Core inflation, which excludes the prices of volatile agricultural produce stood at 11.05 percent in November 2020, down by 0.09 percent when compared with 11.14 percent recorded in October 2020.

“The highest increases were recorded in prices of passenger transport by air, medical services, hospital services, repair of furniture, passenger transport by road, maintenance and repair of personal transport equipment, vehicle spare parts, hairdressing salons, and personal grooming establishments, pharmaceutical products, paramedical services, and motor cars,” NBS noted in the report.

On a year-on-year basis, food inflation was highest in Kogi (24.00 percent), Sokoto and Zamfara (20.60%); Ebonyi (20.20 percent), while Abia (16.20 percent), Bauchi (15.60 percent) and Gombe and Nasarawa (15.00 percent) recorded the slowest rise.

The latest inflation figure is in line with the financial derivatives forecast of 14.8 percent, where the analysts cited November as the first month in which the impact of the increase in the price of PMS and a partial rise in electricity tariffs will feed into the inflation basket.

Nigeria’s Inflation Hits 14.23 Percent As Food Prices Skyrocket

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

 

Nigeria’s inflation continued its upward trend in October, rising to 14.23 percent, 0.52 percentage points higher than the 13.71 percent recorded in September.

According to the latest data released by the National Bureau of Statistics on Monday, the core food index rose by 17.38 percent majorly driven by increases in food items.

Core inflation also maintained a steady rise to 11.14 percent, from the 10.58 percent reported in August this year.

Urban inflation rose to 14.81 percent year-on-year from the 14.31 percent recorded last month, while rural inflation hit 13.68 percent.

Meanwhile, inflation was highest in Zamfara, Sokoto, and Ebonyi, with Lagos, Abuja, and Cross River recording the lowest in October.

Nigeria’s Inflation Hits 13.71%, Highest In 30 Months

 

Nigeria’s inflation rate has continued its 30-month surge, with the consumer price index, (CPI) which measures inflation increase by 13.71 percent (year-on-year) in September 2020.

This is 0.49 percent points higher than the rate recorded in August 2020 (13.22) percent.

A report released by the National Bureau of Statics (NBS) on Thursday, states that increases were recorded in all 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 0.14 percent rate higher than the rate recorded in August 2020 (1.34) percent”.

The highest increase recorded in food prices

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.

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On a month-on-month basis, the urban index rose by 1.56 percent in September 2020, up by 0.14 from 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.

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 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 pNigeria’s inflation rate has continued its 30-month surge, rising to 13.71% in September.ercent, 0.26 percent points from the average annual rate of change recorded in August 2020 (14.87 percent).