Nigeria’s Inflation Rate rose to 11.24% in September 2019, 0.22% Higher Than August 2019 Rate

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rice July Headline Inflation Rate Jumpsto 12.82% as Food Prices Rise…
A vendor arranges bags of rice at the Wuse market in Abuja, Nigeria May 15, 2018. REUTERS/Afolabi Sotunde

All Item Index

On a month-on-month basis, the Headline index increased by 1.04 percent in September 2019, this is 0.05 percent rate higher than the rate recorded in August 2019 (0.99) percent.

The consumer price index, (CPI) which measures inflation increased by 11.24 percent (year-on-year) in September 2019. This is 0.22 percent points higher than the rate recorded in August 2019 (11.02) percent.

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

The percentage change in the average composite CPI for the twelve months period ending September 2019 over the average of the CPI for the previous twelve months period was 11.268 percent, showing 0.003 percent point from 11.271 percent recorded in August 2019.

The urban inflation rate increased by 11.78 percent (year-on-year) in September 2019 from 11.48 percent recorded in August 2019, while the rural inflation rate increased by 10.77 percent in September 2019 from 10.61 percent in August 2019.

On a month-on-month basis, the urban index rose by 1.13 percent in September 2019, up by 0.09 from 1.04 percent recorded in August 2019, while the rural index also rose by 0.96  percent in September 2019, up by 0.03 from the rate recorded in August 2019 (0.93) percent.

The corresponding twelve-month year-on-year average percentage change for the urban index is 11.63 percent in September 2019. This is higher than 11.62 percent reported in August 2019, while the corresponding rural inflation rate in September 2019 is 10.94 percent compared to 10.95 percent recorded in August 2019.

Food Index

The composite food index rose by 13.51 percent in September 2019 compared to 13.17 percent in August 2019.

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

On a month-on-month basis, the food sub-index increased by 1.30 percent in September 2019, up by 0.08 percent points from 1.22 percent recorded in August 2019.

The average annual rate of change of the Food sub-index for the twelve-month period ending September 2019 over the previous twelve-month average was 13.47 percent, 0.01  percent points from the average annual rate of change recorded in August 2019 (13.46) percent.

All Items Less Farm Produce

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The “All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 8.94 percent in September 2019, up by 0.26 percent when compared with 8.68 percent recorded in August 2019.

On a month-on-month basis, the core sub-index increased by 0.89percent in September 2019. This was up by 0.22 percent when compared with 0.67 percent recorded in August 2019.

The highest increases were recorded in prices of Cleaning, Repair and hire of clothing, Repair of household appliance, Hospital services, Major household appliances, Glassware, tableware and household utensils, Spirits, Clothing materials, other articles of clothing accessories, Garment and Repair and hire of footwear.

The average 12-month annual rate of change of the index was 9.34 percent for the twelve-month period ending September 2019; this is 0.07 percent points lower than 9.41 percent recorded in August 2019.

State Profiles

In analysing price movements under this section, note that the CPI is weighted by consumption expenditure patterns which differ across states. Accordingly, the weight assigned to a particular food or non-food item may differ from state to state making interstate comparisons of consumption basket inadvisable and potentially misleading.

All Items Inflation

In September 2019, all items inflation on year on year basis was highest in Kebbi (14.09%), Bauchi (13.74%) and Plateau (13.25%), while Delta (9.72%), Bayelsa (9.40%) and Kwara (8.46%) recorded the slowest rise in headline Year on Year inflation.

On month on month basis, however, September 2019 all items inflation was highest in Kogi (3.18%), Ondo (2.17%) and Kwara (2.02%), while Kano (0.45%), River (0.41%) and Zamfara (0.33%) recorded the slowest rise.

Food Inflation

In September 2019, food inflation on a year on year basis was highest in Niger (16.65%), Nasarawa (16.57%) and Abuja (16.31%), while Akwa Ibom (11.72%), Benue (11.22%) and Bayelsa (9.95%) recorded the slowest rise.

On month on month basis however, September 2019 food inflation was highest in Kogi (4.90%), Delta (3.82%) and Kwara (3.70%), while Kano (0.18%) and Zamfara (0.17%) recorded the slowest rise with River recording price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).

Download the full CPI report here