The consumer price index, (CPI) which measures inflation increased by 17.33% (year-on-year) in February 2021, as the cost of goods and services continue to rise in Nigeria.
The 17.33% is the highest inflation rate recorded in Nigeria in four years (since March 2017). However, the majority of Nigerians believe that the inflation rate in the country is higher than being reported.
According to NBS, increases were recorded in all the 12 Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the Headline index according to the report.
On a month-on-month basis, the Headline index increased by 1.54 percent in February 2021, 0.05 percent rate higher than the 1.49 percent recorded in January 2021.
The urban inflation rate increased by 17.92 percent (year-on-year) in February 2021 from 17.03 percent recorded in January 2021, while the rural inflation rate increased by 16.77 percent in February 2021 from 15.92 percent in January 2021.
The composite food index rose by 21.79 percent in February 2021 compared to 20.57 percent in January 2021 due to increases in prices of Bread and cereals, Potatoes, yam and other tubers, Meat, Food products n.e.c, Fruits, Vegetable, Fish and Oils and fats the report stated.
The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 12.38 percent in February 2021, up by 0.53 percent when compared with 11.85 percent recorded in January 2021, according to the report.
The highest increases were recorded in prices of Passenger transport by air, Medical services, Miscellaneous services relating to the dwelling, Hospital services, Passenger transport by road, Pharmaceutical products, Paramedical services, Repair of furniture, Vehicle spare parts, Maintenance and repair of personal transport equipment, Motor cars, Dental services and Hairdressing salons and personal grooming establishment,
In February 2021, all items inflation on year on year basis was highest in Kogi (24.73%), Bauchi (22.92%) and Ebonyi (20.45%), while Enugu (14.73%), Kwara (14.25%) and Cross River (12.97%) recorded the slowest rise in headline Year on Year inflation.
In February 2021, food inflation on a year on year basis was highest in Kogi (30.47%), Ebonyi (25.73%) and Sokoto (25.68%), while Gombe (19.32%), Bauchi (18.74%) and Akwa Ibom (18.70%) recorded the slowest rise .in year on year inflation.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.