Inflation rate falls to 15.99 in October

A report by the National Bureau of Statistics (NBS) has shown a fall in the inflation rate to 15.99 in October from the highest record of 18.17 in March 2021.

The report said the Consumer Price Index, (CPI), which measures inflation, saw an increase of 1.76 per cent recorded in October 2020 (14.23 per cent) but a 0.17 per cent rate lower than the figure recorded in September 2021 (16.63).

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The Headline index increased by 0.98 per cent in October but the increase was a 0.17 per cent rate lower than the rate recorded in September 2021 (1.15 per cent).

However, the urban inflation rate increased by 16.52 per cent (year-on-year) in October 2021 from 14.81 per cent recorded in October 2020, while the rural inflation rate increased by 15.48 per cent in October 2021 from 13.68 per cent in October 2020.

“On a month-on-month basis, the urban index rose by 1.02 per cent in October 2021, down by 0.19 percentage point the rate recorded in September 2021 (1.21 per cent), while the rural index also rose by 0.95 per cent in October 2021, down by 0.15 percentage point the rate that was recorded in September 2021 (1.10 per cent).”

It added that food index rose by 18.34 per cent in October 2021 compared to 17.38 per cent in October 2020.

It said the rise of food index was caused by increases in prices of food products like coffee, tea and cocoa, milk, cheese and eggs, bread and cereals, vegetables and potatoes, yam and other tuber.

However, the price increases reduced on month-on-month basis, from 1.26 per cent rise in September 2021 to a 0.91 per cent rise in October 2021.

For all items less farm produce or Core inflation, which excluded the prices of volatile agricultural produce, it stood at 13.24 per cent in October 2021, a spike of 2.10 per cent points when compared with 11.14 per cent recorded in October 2020.

NBS identified the highest increases recorded in the category as that of gas, fuels and lubricants for personal transport equipment, vehicle spare parts, non-durable household goods among others.

“On month-on-month basis, the core sub-index increased by 0.80 per cent in October 2021. This was down by 0.44 per cent point when compared with 1.24 per cent recorded in September 2021.”

Food inflation on a year on year basis was highest in Kogi (23.69%), Gombe (23.29%) and Jigawa (21.91%), while Edo (13.16%), Rivers (14.46%) and Adamawa (15.42%) recorded the slowest rise in year on year food inflation.

On a month-on-month basis however, October 2021 food inflation was highest in Kebbi (2.29%), Yobe (2.23%) and Akwa Ibom (2.16%), while Kano, Kogi, Osun and Oyo recorded price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).

For all items, inflation year-on-year basis was highest in Bauchi (19.63%), Gombe (19.33%) and Jigawa (19.07%), while Kwara (11.82%), Edo (13.31%) and Rivers (13.66%) recorded the slowest rise.

On month-on-month, there were highest increases in Cross River (2.14%), Benue/Kebbi (2.02%) and Yobe (1.71%), While the slowest rise in inflation for all items were Adamawa (0.18%), Kano and Kogi recording price deflation or negative inflation (general decrease in the prices of goods and services or a negative inflation rate).