Amidst recession, inflation hits 14.89 percent in November
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AGAIN, Nigeria’s inflation rate has peaked at a new height of 14.89 percent in November, data on the Consumer Price Index (CPI) released by the National Bureau of Statistics (NBS) shows.
Nigeria is currently grappling with its economic crisis as it is going through the second recession in four years.
The CPI measures the average change over time in the prices of goods and services consumed by people for day-to-day living.
The consumer price index (CPI), which measures inflation, increased by 14.89 percent (year-on-year) in November 2020. This is 0.66 percent points higher than the rate recorded in October 2020 (14.23 percent).
Also in November, Nigeria entered her worst economic recession in over 3 decades and second experience of recession in four years.
From the report, the headline index increased by 1.60 percent in November 2020, a month-on-month basis. This is 0.06 percentage points higher than the rate recorded in October 2020 (1.54 percent).
In addition, the urban inflation rate also increased by 15.47 percent (year-on-year) from 14.81 percent recorded in October 2020, while the rural inflation rate increased by 14.33 percent in November 2020 from 13.68 percent in October 2020.
The urban index rose by 1.65 percent (on a month-on-month basis) in November, by 0.05, from 1.60 percent recorded in October 2020, while the rural index also rose by 1.56 percent in November 2020, up by 0.08 from 1.48 percent recorded in October 2020.
When compared to 17.38 percent in October 2020, the composite food index rose sharply by 18.30 percent in November.
“This rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, meat, fish, fruits, vegetables and oils and fats.”
All item less farm produce
“The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 11.05 percent in November, down by 0.09 percent when compared with 11.14 percent recorded in October 2020.”
“On a month-on-month basis, the core sub-index increased by 0.71 percent in November 2020 representing a sharp 0.54 percentage point decrease when compared with 1.25 percent recorded in October 2020.”
“The highest increases were recorded in prices of Passenger transport by air, Medical services, Hospital services, Repair of furniture, Passenger transport by road, Maintenance and repair of personal transport equipment, vehicle spare parts, Hairdressing salons and personal grooming establishments, Pharmaceutical products, Paramedical services, and Motor cars.”
All items inflation
“In November 2020, all items inflation on year on year basis was highest in Bauchi (19.67 percent), Kogi (19.81percent) and Zamfara (17.30 percent), while Abia (13.26 percent), Delta (13.20 percent) and Kwara (12.24 percent) recorded the slowest rise in headline Year on Year inflation.”
“On month on month basis, however, November 2020 all items inflation was highest in Kogi (3.08 percent), Bauchi (2.33 percent) and Oyo (2.25 percent), while River (0.88 percent), Akwa Ibom (0.77 percent) and Nasarawa (0.44 percent) recorded the slowest rise in headline month on month inflation.”
Food inflation on a year on year basis was highest in Kogi (24 percent), Sokoto and Zamfara (20.60 percent), and Ebonyi (20.20 percent), while Abia (16.20 percent), Bauchi (15.60 percent), Gombe and Nasarawa (15.00 percent) recorded the slowest rise.
On a month-on-month basis, however, food inflation was highest in Kogi (3.37 percent), Osun (3.08 percent) and Cross River (2.93 percent), while Akwa Ibom (0.60 percent), Edo (0.43 percent) with Nasarawa recording price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).