Inflation rate rises to 13.71%, highest in 30 months | Dailytrust

Inflation rate rises to 13.71%, highest in 30 months

The Consumer Price Index (CPI) which measures inflation increased by 13.71 per cent in September 2020 in a yearly comparison.

The September inflation figure is the highest inflation rate recorded in 31 months since the 14.33% rate was attained in February 2018, according to the National Bureau of Statistics (NBS) report released on Thursday.

The increase is 0.49 per cent point higher than the rate recorded in August 2020 which was 13.22 per cent. It was 11.24% in September 2019.

On monthly basis, 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.

The October NBS report said key in the construction of the price index is the selection of the market basket of goods and services. Every month, 10,534 informants spread across the country provide price data for the computation of the CPI. The market items currently consist of 740 goods and services regularly priced.

Increases were recorded in all the 12 Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the Headline index.

On a monthly basis, the headline index increased by 1.48 per cent in September 2020. This is 0.14 percent rate higher than the rate recorded in August 2020 (1.34) percent.

The percentage change in the average composite CPI for the twelve months period ending September

2020 over the average of the CPI for the previous twelve months period was 12.44 per cent, showing 0.21 per cent point from 12.23 per cent recorded in August 2020.

The composite food index rose by 16.66 per cent in September 2020 compared to 16.00 per cent in August 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 and oils and fats.

On monthly basis, the food sub-index increased by 1.8 per cent in September 2020, up by 0.21

Per cent points from 1.67 per cent 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.

On monthly basis, the 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).