The Inflation rate in Nigeria has continued to soar, rising for thirteenth straight months in September 2020, as the prices of goods and services continue to rise in the country. According to the report released by the National Bureau of Statistics, the Consumer Price Index (CPI) which measures inflation increased by 13.71 percent year on year in September 2020.
This is 0.49 percent higher than 13.22 percent recorded in August 2020. The inflation in Nigeria rate was 12.82 percent in July.
August inflation rate is the highest that has been recorded in Nigeria since March 2018.
On a month-on-month basis, the Headline index increased by 1.48 percent in September 2020. This is a 0.14 percent rate higher than the 1.34 percent recorded in August 2020.
As was seen in July and August, increases were recorded in all 12 Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the Headline index, such as food and non-alcoholic beverages; clothing and footwear; housing, water, electricity, gas; health; transport, communication, etc.
The value of the naira has continued to decline despite the control measures introduced by the CBN. With the declining value of the nation’s currency, importers will spend more naira to acquire the same goods or raw materials, which will ultimately translate to a higher price for the consumers.
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 the prices of Bread and Cereals, Potatoes, Yam, and other tubers, Meat, Fish, Fruits, and Oils and fats.
On a 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 months ending September 2020 over the previous twelve-month average was 15.13 percent, 0.26 percent points from the average annual rate of change recorded in August 2020 (14.87 percent) according to the report.
The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 10.58 percent in September 2020, up by 0.06 percent when compared with 10.52 percent recorded in August 2020.
On a month-on-month basis, the core sub-index increased by 0.94 percent in September 2020. This was down by 0.11 percent when compared with 1.05 percent recorded in August 2020.
The highest increases were recorded in prices of Passenger transport by air, Medical services, Hospital services, Pharmaceutical products, Passenger transport by road, Motor cars, Vehicle spare parts, Maintenance and repair of personal transport equipment, Repair of furniture and Paramedical services
In September 2020, all items inflation on year on year basis was highest in Bauchi (17.85%), Zamfara (17.42%), and Kogi (16.66%), while Lagos (11.19%), Abuja (10.59%), and Kwara (10.53%) recorded the slowest rise in headline Year on Year inflation
On month on month basis, however, in September 2020 all items inflation was highest in Bauchi (3.36%), Kogi (2.63%), and Zamfara (2.75%), while Nasarawa (0.66%), Abuja (0.64%), and Ondo (0.31%) recorded the slowest rise in headline month on month inflation.
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In September 2020, food inflation on a year on year basis was highest in Zamfara (20.94%), Kogi (19.06%), and Plateau/Yobe (18.90%), while Nasarawa (13.94%), Lagos (13.87%), and Ondo (13.59%) recorded the slowest rise.
On month on month basis, however, September 2020 food inflation was highest in Zamfara (3.65%), Anambra (3.19%), and Kaduna (3.15%), while Nasarawa (0.51%) and Abuja (0.15%) recorded the slowest rise with Ondo recording price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).
The continuous rise in the inflation rate in Nigerian is worsening the living condition of the masses especially the fixed income earners. The value of money is being eroded and the purchasing power of the masses is negatively affected.
The government and the CBN need to take decisive action to control the inflation rate.
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