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Nigeria’s headline inflation rises 0.25% to 20.77% in Sept, as core inflation rate up 3.8%

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According to the latest data from the National Bureau of Statistics (NBS), consumer inflation in Nigeria increased to 20.77 per cent year on year in September from the 20.52 per cent recorded for the previous month.

NBS’s CPI and Inflation Report for September 2022 stated that the rate is 4.14 percentage points more than the rate that was registered a year ago, which was 16.63 percentage points.

This also implies that many Nigerians’ purchasing power has decreased by 4.14 per cent in the year leading up to September 2022.

“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 per).

“This means that in the month of September 2022, the headline inflation rate (month–on–month basis) declined by 0.41 per cent, relative to August 2022.

“The percentage change in the average CPI for the twelve month period ending September 2022 over the average of the CPI for the previous twelve month period was 17.43 per cent, showing a 0.60 per cent increase compared to 16.83% recorded in September 2021.

“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 per cent).

“This means that in the month of September 2022, the headline inflation rate (month–on–month basis) declined by 0.41 per cent, relative to August 2022,” the bureau stated in its report.

The CPI measures the average change over time in the prices of goods and services consumed by people for day-to-day living.

NBS said that over the past two months, there has been a decline in headline inflation on a month-on-month basis due to a decline in the changes in the food index relative to the reference month index which is due to the present harvest season.

The bureau also ascribed the increase in headline inflation to the disruption in the supply of food products, the increase in import cost due to the persistent currency depreciation and the general increase in the cost of production.

“The food inflation rate in September 2022 was 23.34 per cent on a year-on-year basis; which was 3.77 per cent higher compared to the rate recorded in September 2021 (19.57 per cent).

“This rise in food inflation was caused by increases in prices of Bread and cereals, Food products n.e.c, Potatoes, yam, and other tubers, oil, and fat.

NBS stated that the food inflation rate in September was 1.43 per cent on a month-on-month basis, this was a 0.54 per cent fall compared to the rate recorded in August 2022 (1.98 per cent.

“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-month period ending September 2022 over the previous twelve-month average was 19.36 per cent, which was a decline of 1.35 per cent points from the average annual rate of change recorded in September 2021 20.71 per cent.

However, experts said prices of food is expected to go up in months ahead due to the impact of flooding in Benue some part of the country regarded as the nation’s food basket.

Global Financial Digest reports that more than 600 people are now known to have perished in the worst floods in a decade in Nigeria, according to a new toll released Sunday.

The disaster had also forced more than 1.3 million people from their homes, said a statement by Nigeria’s ministry of humanitarian affairs, released on Twitter.

“Unfortunately, over 603 lives have been lost as of today October 16, 2022,” said Humanitarian Affairs Minister Sadiya Umar Farouq.

The implication of this is that food prices will go up and further push up the consumer price index in the coming months.

The ‘’All items less farm produce’’ or Core inflation, which excludes the prices of volatile ag-ricultural produce stood at 17.60 per cent in September 2022 on a year-on-year basis; up by 3.86 per cent when compared to 13.74 per cent recorded in September 2021.

On a month-on-month basis, the core inflation rate was 1.59 per cent in September 2022. This was relatively the same rate recorded in August 2022.

The highest increases were recorded in prices of Gas, Liquid fuel, Passenger transport by Air, Passenger travel by road, and Solid fuel.

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