Nigeria’s Inflation Rate Hits 20.77% In September As Panic Sets In

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The National Bureau of Statistics (NBC) has said that Nigeria’s headline inflation rate (all items index) in September 2022 was 20.77 per cent on a year-on-year basis.
The agency’s report, which was signed by Prince Adeyemi Adeniran, the Statistician-General, National Bureau of Statistics, (NBS), and made available to journalists in Abuja on Monday, noted that the figure was 4.14 per cent points higher compared to the rate recorded in September 2021, which was 16.63 per cent.
It explained that the development shows that the general price level for all items index rose by 4.14 per cent in September 2022 when compared to the same month in the preceding year (i.e., September 2021).
“The Headline Inflation rate (all items index) in September 2022 was 20.77 per cent on a year-on-year basis, this was 4.14 per cent points higher compared to the rate recorded in September 2021, which was 16.63 per cent. This shows that the general price level for all items index rose by 4.14 per cent in September 2022 when compared to the same month in the preceding year (i.e., September 2021).
“The increase in the all-item index was a result of an Interruption in the food supply chain, the influence of domestic currency depreciation on the cost of importation, and a general increase in the cost of production” it added.
According to the report, on a month-on-month basis, the Headline inflation rate in September 2022 was 1.36 per cent, this was 0.41 per cent lower than the rate recorded in August 2022 (1.77%). Meaning that in September 2022 the general price level was 0.41 per cent lower relative to August 2022.
It further explained that the decline in the all-items index on a month-on-month basis, that is over the two months was due to the changes in the food index relative to the reference month index which is due to the ongoing harvesting season.
It added:” The percentage change in the average CPI for all items index for the twelve months ending September 2022 over the average of the CPI for the previous twelve months period was 17.43 per cent, showing a 0.6 per cent increase compared to 16.83 per cent recorded in September 2021. The food sub-index increased by 23.34 per cent on a year-on-year basis in September 2022, and the inflation rate was 3.77 per cent higher compared to the rate recorded in September 2021 (19.57%). The rise in the food index was caused by increases in prices of Bread and cereals, food products, potatoes, yams and other tubers, oil and fat.
“On a month-on-month basis, the food inflation rate in September was 1.43 per cent, this was a 0.54 per cent decline compared to the rate recorded in August 2022 (1.98%); this decline was attributed to a reduction in prices of some food items like tubers, palm oil, maize, beans, and vegetables. The average annual rate of food inflation for the twelve months ending September 2022 over the previous twelve-month average was 19.36 per cent, which was a 1.35 per cent points decline from the average annual rate of change recorded in September 2021 (20.71%).
“The index for all items less farm produce (Core inflation), which excludes the prices of volatile agricultural produce stood at 17.60 per cent in September 2022 on a year-on-year basis; the index rose by 3.86 per cent when compared to 13.74 per cent recorded in September 2021. On a month-on-month basis, the core sub-index was 1.59 per cent in September 2022, which was similar to the rate recorded in August 2022”
The report said the highest increases were recorded in prices of gas, liquid fuel, passenger transport by air, solid fuel, and passenger travel by road, while the average 12-month annual inflation rate was 14.93 per cent for the twelve months ending September 2022; this was 2.38 per cent points higher than the 12.55 per cent recorded in September 2021.