In Nigeria, the annual food inflation rate rose for the 24th consecutive month to 20.75 per cent in October from 20.71 per cent in September, owing to further increases in the prices of basic food items, so says the National Bureau of Statistics (NBS).
The data agency disclosed this in its Consumer Price Index (CPI) and Inflation Report for October 2021, explaining, “this rise in the food index was caused by increases in prices of food products, coffee, tea and cocoa, milk, cheese and eggs, bread and cereals, vegetables and potatoes, yam and other tubers.”
While the Food inflation rate has risen by 7.38 percentage points since May 2019 when it dropped to 13.37 per cent, the NBS report showed that the annual Headline inflation rate continued on its downward trend to 15.99 per cent in October from 16.63 per cent in September, indicating a steady slow down in price increases across the country.
Consequently, the inflation rate has fallen by 2.18 percentage points since March when it peaked at 18.17 per cent, the highest in four years.
“The CPI which measures inflation increased by 15.99 percent YoY in October 2021. This is 1.76 per cent points higher than the rate recorded in October 2020 (14.23) percent. Increases were recorded in all classifications of individual consumption according to purpose (COICOP) divisions that yielded the Headline index.
“On a month-on-month (MoM) basis, the Headline index increased by 0.98 per cent in October 2021, this is 0.17 per cent points lower than the rate recorded in September 2021 (1.15) percent. The composite food index rose by 18.34 percent in October 2021 compared to 17.38 percent in October 2020.
“This rise in the food index was caused by increases in prices of food products, coffee, tea and cocoa, milk, cheese and eggs, bread and cereals, vegetables and potatoes, yam and other tubers. On MoM basis, the food sub-index increased by 0.91 percent in October 2021, down by 0.35 per cent points from 1.26 percent recorded in September 2021”, NBS said.
In the meantime, according to the Statistician-General of the Federation, Simon Harry, the country’s headline inflation declined for the seventh consecutive month to 15.99 per cent in October.
Though this is 1.76 per cent points higher than the rate recorded in October 2020 (14.23) per cent, increases were recorded in all COICOP divisions that yielded the headline index. On a month-on-month basis, the price index increased by 0.98 percent in October 2021, this is 0.17 percent rate lower than the rate recorded in September 2021 (1.15) per cent, according to data released by the NBS.
The composite food index, according to the data agency, rose by 18.34 per cent in October 2021 compared to 17.38 per cent in October 2020. “This rise in the food index was caused by increases in prices of Food product n.e.c, Coffee, tea and cocoa, Milk, cheese and eggs, Bread and cereals, Vegetables and Potatoes, yam and other tubers”, it said.
On MoM basis, the food sub-index increased by 0.91 per cent in October 2021, down by 0.35 percent points from 1.26 percent recorded in September 2021. The highest increases were recorded in prices of Gas, Fuels and lubricants for personal transport equipment, vehicle spare parts, non-durable household goods, Solid fuel, Passenger transport by road, Passenger transport by air, Garments, Cleaning, repair and hire of clothing, Major household appliances whether electric or not, Wine, Clothing materials, other articles of clothing and clothing accessories and Liquid fuel.
The percentage change in the average composite CPI for the 12 months period ending October 2021 over the average of the CPI for the previous twelve months period was 16.96 percent, showing 0.13 percent point from 16.83 percent recorded in September 2021.
In the month ended, urban inflation rate increased by 16.52 per cent (year-on-year) in October 2021 from 14.81 percent recorded in October 2020, while the rural inflation rate increased by 15.48 percent in October 2021 from 13.68 percent in October 2020.
On a month-on-month basis, urban index rose by 1.02 per cent in October 2021, down by 0.19 percentage points 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) percent.
The 12-month year-on-year average percentage change for the urban index is 17.53 per cent in October 2021. This is higher than 17.41 percent reported in September 2021, while the corresponding rural inflation rate in October 2021 is 16.39 per cent compared to 16.26 percent recorded in September 2021.
The average annual rate of change of the Food sub-index for the twelve-month period ending October 2021 over the previous twelve-month average was 20.75 per cent, 0.04 percent points from the average annual rate of change recorded in September 2021 (20.71) percent.
The ‘’all items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 13.24 percent in October 2021, up by 2.10 percent points when compared with 11.14 per cent recorded in October 2020.
On MoM basis, the core sub-index increased by 0.80 per cent in October 2021. This was down by 0.44 percent point when compared with 1.24 per cent recorded in September 2021.
