Nigeria’s Inflation Rate Hits 17.33%, Highest In Four Years

Increases were recorded in all COICOP divisions that yielded the Headline index.

 

Nigeria’s inflation rate has risen to 17.33% in February from 16.47% recorded in January.

This is the highest point since April 2017.

According to the CPI/Inflation report released by the National Bureau of Statistics (NBS) on Tuesday, the food inflation stood at 21.79 percent, the highest point since the 2009 data series began.

“The consumer price index, (CPI) which measures inflation increased by 17.33 percent (year-on-year) in February 2021. This is 0.86 percent points higher than the rate recorded in January 2021 (16.47) percent.

READ ALSO: Nigeria’s Unemployment Rate Rises To 33.3% In Q4 2020

“Increases were recorded in all COICOP divisions that yielded the Headline index. The urban inflation rate increased by 17.92 percent (year-on-year) in February 2021 from 17.03 percent recorded in January 2021, while the rural inflation rate increased by 16.77 percent in February 2021 from 15.92 percent in January 2021,” NBS reported.

A file photo of a resident at a market in Akure, Ondo State. Photo: Sodiq Adelakun
The upward movement in food inflation, NBS said was caused by increases in the prices of bread, cereals, fish, potatoes, yam, and other tubers.

 

On a month-on-month basis, the Headline index increased by 1.54 percent in February 2021, this is a 0.05 percent rate higher than the rate recorded in January 2021 (1.49 percent).

Also, the percentage change in the average composite CPI for the twelve months period ending February 2021 over the average of the CPI for the previous twelve months period was 14.05 percent, showing a 0.43 percent point from 13.62 percent recorded in January 2021.

According to the NBS, the headline inflation for month-on-month also increased to 1.89 percent from 1.83 percentage points.

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

Meanwhile, core inflation, which excludes the prices of agricultural items, increased to 12.38 percent in February compared to 11.85 percent in January 2021.

In terms of states, Kogi, Bauchi, and Ebonyi states recorded the highest inflation growths while Kwara, Enugu, and Cross River states saw the slowest rise in inflation for the period under review.

Food Prices Continue To Rise Despite Drop In Inflation

Despite Nigeria’s inflation rate downward trend and decline to 15.98 percent from 16.01, food prices have continued to rise.

The National Bureau of Statistics in the Consumer Price Index report relased on Tuesday measures the inflation with the rate dropping year-on-year from 16.01 per cent in August to 15.98 per cent in September.

This is the eighth consecutive decline in inflation since January 2017.

However food prices have continued to rise. Data from the National Bureau of Statistics released today shows that food inflation rose to 20.32 percent, from 20.25 percent in August.

”This was driven by notable increases in bread and cereal, meat, vegetables and other food items. Core inflation increased at a slower pace in September, rising by 12.10 percent, versus 12.30 percent in August.

”The Food Index increased by 20.32 percent (year-on-year) in September, up marginally by 0.07 percent points from the rate recorded in August (20.25 percent).”

The rise in food prices includes increases in prices of potatoes, yams and other tubers, milk cheese and eggs, bread and cereals, coffee tea and cocoa, soft drinks, fish, meat and oil and fats.

”The highest increases were recorded in clothing materials and articles of clothing, solid fuels, garments, passenger transport by air, motorcycles, shoes and other footwear, furniture and furnishing and non-durable household goods.”

Sales Managers Index: Nigeria Continues To Drop

Sales Managers IndexNigeria’s inflationary pressures intensified in the month of March, pushing all five parameters of the Sales Managers Index to a 12-month low.

A new set of data released on Monday by the London-based World Economics shows Nigeria’s Business Confidence Index down for the seventh consecutive month, reaching the lowest level in a year.

Businesses in the survey commented on poor consumer demand, rising unemployment, high inflation, lower oil prices and difficult exchange rate conditions.

The Market Growth Index measured by the report also shows fifth consecutive decline and the lowest since March 2015.

The Product Sales Index falls first time in 12 months as managers point to general rise in prices charged for products and services.

At the employment level in the first quarter of 2016, the staffing index fell below the 50.0 no-change mark for the first time, as companies comment on staff rationing as part of cost-cutting measures at lower level of employment.

Nigeria’s Inflation Rises By 11.4% In February

inflationNigeria’s headlines inflation for the month of February has jumped to 11.4% up by 2.6% month-on-month, according to the report just released by the Bureau of Statistics.

Consumer inflation was reported at 9.6% in January, already outside the threshold set for monetary policy considerations by the Central Bank.

Ahead of the release, inflation estimates for February has been put at between 9.7% and 10.1%.

February 2015 Consumer Price Index (CPI)/ Inflation Report released by the National Bureau of Statistics explained, “The faster pace of increases which led to the overall rise in the headline index was recorded across almost all major divisions.

“This contributes to the headline index with the exception of the restaurants and hotels division which increased, albeit at a slower pace.”

According to the statistics office, the food sub-index moved up 1.4% month-on-month to 11.3% in February.

“The food sub-index increased at a faster pace with the exception of potatoes, yams and other tubers and sugar, jam, honey, chocolate and confectionery groups.

“The ‘All Items less Farm Produce’ or Core sub-index, increased at a faster pace in February as imported items as well as other domestic products, resulting in ripple effects across many divisions,” the reports says.

Urban inflation climbed 3.0% to 12.3% and rural inflation reported higher at 10.7% advancing 1.8% last month.