Nigeria’s Inflation Rate Hits 14.89% In Nov 2020 As Food Inflation Spikes

The consumer price index, (CPI) which measures inflation rate revealed that Nigeria’s Inflation Rate has increased by 14.89 per cent (year-on-year) in November 2020.

This is 0.66 percentage points higher than the rate recorded in October 2020 (14.23 percent). Increases were recorded in all COICOP divisions that yielded the Headline index.

On a month-on-month basis, the Headline index increased by 1.60 percent in November 2020. This is 0.06 percentage points higher than the rate recorded in October 2020 (1.54 percent).

The percentage change in the average composite CPI for the twelve months period ending November 2020 over the average of the CPI for the previous twelve months period was 12.92 percent, representing a 0.26 percentage point increase over 12.66 percent recorded in October 2020.

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.

On a month-on-month basis, the urban index rose by 1.65 percent in November 2020, up by 0.05, from 1.60 percent recorded in October 2020, while the rural index also rose by 1.56 percent in November 2020, up by 0.08 from 1.48 percent recorded in October 2020.

Nigeria’s Inflation Rate Hits 14.89% In Nov 2020 As Food Inflation Spikes

The corresponding twelve-month year-on-year average percentage change for the urban index was 13.65 percent in November 2020. This is higher than 13.29 percent reported in October 2020, while the corresponding rural inflation rate in November 2020 is 12.35 percent compared to 12.09 percent recorded in October 2020.

FOOD INDEX

The composite food index rose sharply by 18.30 percent in November 2020 compared to 17.38 percent in October 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, Vegetables and Oils and fats.

On a month-on-month basis, the food sub-index increased by 2.04 percent in November 2020, up by 0.08 percent points from 1.96 percent recorded in October 2020.

The average annual rate of change of the Food sub-index for the twelve-month period ending November 2020 over the previous twelve-month average was 15.75 percent, 0.33 percent points from the average annual rate of change recorded in October 2020 (15.42 percent).

ALL ITEMS LESS FARM PRODUCE

The ”All items less farm produce” or 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.

On a month-on-month basis, the core sub-index increased by 0.71 percent in November 2020 representing a sharp 0.54 percentage point decrease when compared with 1.25 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.

The average 12-month annual rate of change of the index was 10.14 percent for the twelve-month period ending November 2020 representing a 0.18 percent points increase over 9.96 percent recorded in October 2020.

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 November 2020, all items inflation on year on year basis was highest in Bauchi (19.67%), Kogi (19.81%) and Zamfara (17.30%), while Abia (13.26%), Delta (13.20%) and Kwara (12.24%) recorded the slowest rise in headline Year on Year inflation.

On month on month basis, however, November 2020 all items inflation was highest in Kogi (3.08%), Bauchi (2.33%) and Oyo (2.25%), while River (0.88%), Akwa Ibom (0.77%) and Nasarawa (0.44%) recorded the slowest rise in headline month on month inflation.

Nigeria’s Inflation Rate Hits 14.89% In Nov 2020 As Food Inflation Spikes: Food Inflation

In November 2020, food inflation on a year on year basis was highest in Kogi (24.00%), Sokoto and Zamfara (20.60%) and Ebonyi (20.20%), while Abia (16.20%), Bauchi (15.60%) and Gombe and Nasarawa (15.00%) recorded the slowest rise.

On month on month basis, however, November 2020 food inflation was highest in Kogi (3.37%), Osun (3.08%) and Cross River (2.93%), while Akwa Ibom (0.60%), Edo (0.43%) with Nasarawa recording price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).