Nigeria’s inflation rate accelerates to 20.52%, highest in 17 years

By Motolani Oseni

Nigeria’s headline inflation rate accelerated by 88 basis points to 20.52 per cent year on year in September 2022 from 19.64 per cent in August, the National Bureau of Statistics (NBS) latest report has revealed.

The current inflation reading is the highest since September 2005 when the Consumer Price Index (CPI) settled at 24.32 per cent.

The development showed that the price level in Africa’s largest economy by Gross Domestic Product (GDP) has been worsening due to internal and external market dislocations.

The uptrend in the CP1, according to the statistics office was driven by the food index.

On a month-on-month basis, headline inflation eased by five basis points to 1.77 per cent, according to data from the statistics office.

In September, food inflation rose to its highest level since October 2005 when it printed at 24.56 per cent, increasing by 110 basis points to 23.12 per cent year on year.

It advanced ahead July figure when it rested at 22.02 per cent. Notably, the rise in food inflation was caused by increased prices of Bread and cereals, Food products, Potatoes, yams and other tubers, fish, meat, oil and fat.

On a month-on-month basis, food inflation settled at 1.98 per cent, relative to the 2.04 per cent m/m recorded in the previous month.

Similarly, the core inflation rose by 94 basis points to 17.20 per cent as against 16.26 per cent reported last month. This is the highest level since January 2017 when it settled at 17.87 per cent year on year.

NBS revealed that pressures were most significant in prices of Gas, Liquid fuel, Solid fuel, Passenger transport by road, Passenger transport by Air, fuel and lubricants for personal transport equipment, Cleaning, Repair and Hire of clothing.

Compared to the previous month, the core index moderated by 17 basis points to 1.75 per cent month on month in August 2022.

The NBS report said in August, all items inflation rate on a year-on-year basis was highest in Ebonyi with 25.33 per cent, followed by Rivers with 23.70 per cent and Bayelsa with 23.01 per cent.

“While the states with the slowest rise were Jigawa with 17.30 per cent, followed by Borno with 17.56 per cent and Zamfara with 18.04 per cent,” said the report.

It said on a month-on-month basis, August recorded the highest increase in Anambra with 2.78 per cent, followed by Ondo with 2.53 per cent and Nasarawa with 2.40 per cent.

It observed that the slowest rise was recorded in Yobe with 0.68 per cent followed by Borno with 0.84 per cent and Zamfara with 0.98 per cent.

The report said in August, food inflation on a year-on-year basis was highest in Kwara at 30.80 per cent followed by Ebonyi at 28.06 pe ent and Rivers at 27.64 per cent.

It added that the slowest rise was recorded in Jigawa at 17.77per cent, followed by Zamfara at 18.79 per cent and Oyo at 19.80 per cent.

However, it said on a month-on-month basis, August food inflation was highest in Anambra with 3.05 per cent, followed by Ondo with 2.92 per cent and Bauchi with 2.78 per cent.

The report said the slowest rise was recorded in Yobe with 0.46 per cent, followed by Oyo with 0.89 per cent and Delta with 0.94 per cent.