Nigerian Inflation Rate Rises on Surging Food Costs
Food inflation in Nigeria rose in October to 17.38 percent, compared to 16.66 percent in September 2020, the National Bureau of Statistics said in a report on Monday.
The rising food prices are caused by border closures, dollar restrictions and banditry attacks that are preventing farmers from producing food.
Nigeria’s inflation rate has climbed to a 30-month high, as it rose further to 14.23 percent in October, the latest figures by the National Bureau of Statistics (NBS) has shown.
The report published on the website of the bureau shows that the new inflation rate is 0.52 percent points higher than the rate recorded in September 2020 (13.71 per cent).
“This rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, yam and other tubers, Meat, Fish, Fruits, Vegetable, alcoholic and food beverages and Oils and Fats,” according to the bureau of statistics’ composite food index.
Food costs rose 17.4% from a year earlier, 1.96% in the month
On a month-on-month basis, the food sub-index increased by 1.96 percent in October 2020, up by 0.08 percent points from 1.88 percent recorded in September 2020.
The average annual rate of change of the Food sub-index for the twelve-month period ending October 2020 over the previous twelve-month average was 15.42 percent, representing a 0.29 percent points from the average annual rate of change recorded in September 2020 (15.13) percent.
How about States’ food inflation?
In October 2020, food inflation on a year on year basis was highest in Edo (21.65%), Zamfara (20.88%) and Kogi (20.58%), while Lagos (14.57%), Ogun (14.47%) and Ondo (14.23%) recorded the slowest rise.
On month on month basis, however, October 2020 food inflation was highest in Kwara (3.88%), Edo (3.81%) and Sokoto (3.65%), while Oyo (0.57%) and Jigawa (0.54%) and Taraba (0.29%) recorded the slowest rise on the month on month inflation.
The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 11.14 percent in October 2020, up by 0.56 percent when compared with 10.58 percent recorded in September 2020.
On a month-on-month basis, the core sub-index increased by 1.25 percent in October 2020. This was up by
0.31 percent when compared with 0.94 percent recorded in September 2020.
The highest increases were recorded in prices of Passenger transport by air, Hospital and Medical Services, Passenger transport by road, Pharmaceutical products, Motor cars, Vehicle spare parts, maintenance and repair of personal transport equipment, Hairdressing salons and personal grooming establishments, Miscellaneous services relating to the dwelling, Paramedical services and shoes and other footwear.
The average 12-month annual rate of change of the index was 9.96 percent for the twelve-month period ending October 2020 representing is 0.19 percent points higher than 9.77 percent recorded in September 2020.