The consumer price index, (CPI) which measures inflation increased by 14.89 percent (year-on-year) in November 2020. This is 0.66 percentage points higher than the rate recorded in October 2020 (14.23 percent).
This is the highest inflation rate recorded in Nigeria since February 2018. However, majority of Nigerians believe that the inflation rate in the the country is highly under reported.
Increases were recorded in all the 12 Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the Headline index according to the Consumer Price Index November 2020 report released by the National Bureau of Statistics (NBS).
On a month-on-month basis, the Headline index increased by 1.60 percent in November 2020. This is 0.06 percentage points higher than the rate recorded in October 2020 (1.54 percent) NBS said.
Have you read?
- World Bank Approves $1.5bn Loan For Nigeria
- Capital Importation into Nigeria falls by 74% YoY in Q3 2020- NBS
The urban inflation rate increased by 15.47 percent (year-on-year) in November 2020 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.
On a month-on-month basis, the urban index rose by 1.65 percent in November 2020, up 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.
According to NBS, the composite food index rose sharply by 18.30 percent in November 2020 compared to 17.38 percent in October 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, vegetables, and oils and fats.
The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 11.05 percent in November 2020, down by 0.09 percent when compared with 11.14 percent recorded in October 2020.
In November 2020, all items inflation on year on year basis was highest in Bauchi (19.67%), Kogi (19.81%), and Zamfara (17.30%), while Abia (13.26%), Delta (13.20%), and Kwara (12.24%) recorded the slowest rise in headline Year on Year inflation.
In November 2020, food inflation on a year-on-year basis was highest in Kogi (24.00%), Sokoto and Zamfara (20.60%), and Ebonyi (20.20%), while Abia (16.20%), Bauchi (15.60%), and Gombe and Nasarawa (15.00%) recorded the slowest rise.
On a month-on-month basis, however, November 2020 food inflation was highest in Kogi (3.37%), Osun (3.08%), and Cross River (2.93%), while Akwa Ibom (0.60%), Edo (0.43%) with Nasarawa recording price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).
By: Ifunanya Ikueze
