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Nigeria’s inflation rate drops to 15.99 per cent in October but commodity prices remain high


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NIGERIA’S inflation rate dropped to 15.99 per cent in October, continuing the steady decline from March 2021.

According to the National Bureau of Statistics (NBS) report that was released on Monday, the Consumer Price Index (CPI) recorded a further drop in the prices of goods and services consumed by Nigerians on a daily basis.

Under the food index, the NBS reported that food inflation rates dropped to 18.34 per cent in October from 19.57 per cent in September.

The NBS also reported that “on a month-on-month basis, the food sub-index increased by 0.91 per cent in October 2021, down by 0.35 per cent points from 1.26 per cent recorded in September 2021.”

Chart of Nigeria’s 2021Inflation Trend

In spite of the drop in figures, the prices of certain commodities that Nigerians purchase on a daily basis remain high.

In an October report, The ICIR noted that “in the Federal Capital Territory (FCT), the price of sachet water increased by almost 100 per cent, from N150 to about N250/N300 per bag within the last one month.”

In another ICIR report which assessed the impact of rising gas prices on consumers, it was observed that “the price of LPG in the Federal Capital Territory (FCT) increased from an average of N4, 800 for a 12.5kg cylinder in June to about N7500-N8000 in October”.

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It was the same scenario in other parts of Nigeria.

According to the report “in Lagos, two persons who bought gas between early and mid-October said they paid N6,400 and N7,200 respectively. The price was below N5, 000 in June”.

While there was a drop in food inflation figures in the past month, the cost of commodities that had experienced a surge in prices has remained unchanged.

According to the NBS, the rise of the composite food index from 17.38 per cent in October 2020 to 18.34 per cent in October 2021 was as a result of “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”.

All items inflation on a year-on-year basis was highest in Bauchi State (19.63 per cent), while the rise on a year-on-year basis was slowest in Kwara State (11.82 per cent).

In the same vein, all items inflation on a month-on-month basis was highest in Cross River State (2.14 per cent) while slowest rise on a month-on-month basis was recorded in Adamawa State (0.18 per cent).

Food inflation on a year-on-year basis was highest in Kogi State (23.69 per cent), while Edo State recorded the slowest rise on a year-on-year basis with 13.16 per cent.

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On a month-on-month basis, food inflation was highest in Kebbi State (2.29 per cent) while the slowest rise on a month-on-month basis was recorded in Kano, Kogi, Osun and Oyo states.

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