Daily Trust

101.303 In­fla­tion rises to 13.71%, high­est in about 3 yrs

- By Fran­cis Arinze Iloani & Sun­day Michael Ogwu (La­gos) Business · Finance · National Bureau of Statistics · Abuja

The Con­sumer Price In­dex (CPI) which mea­sures in­fla­tion in­creased by 13.71 per cent in Septem­ber 2020 in a yearly com­par­i­son.

The Septem­ber in­fla­tion fig­ure is the high­est in­fla­tion rate recorded in 31 months since the 14.33% rate was at­tained in Fe­bru­ary 2018, ac­cord­ing to the Na­tional Bureau of Sta­tis­tics (NBS) re­port re­leased on Thurs­day.

The in­crease is 0.49% point higher than the rate recorded in Au­gust 2020 which was 13.22%. It was 11.24% in Septem­ber 2019.

On monthly ba­sis, in Septem­ber 2020, the all items in­fla­tion was high­est in Bauchi (3.36%), Kogi (2.63%) and Zam­fara (2.75%), while Nasarawa (0.66%), Abuja (0.64%) and Ondo (0.31%) recorded the slow­est rise in head­line month on month in­fla­tion.

The Oc­to­ber NBS re­port said ev­ery month, 10,534 in­for­mants spread across the coun­try pro­vided price data for the com­pu­ta­tion of the CPI. The mar­ket items cur­rently con­sist of 740 goods and ser­vices reg­u­larly priced.

The com­pos­ite food in­dex rose by 16.66% in Septem­ber com­pared to 16% in Au­gust. This rise was caused by an in­crease in prices of bread and ce­re­als, pota­toes, yam and other tu­bers, meat, fish, fruits and oils and fats.

On a monthly ba­sis, the food sub-in­dex in­creased by 1.8%, up by 0.21% points from 1.67% recorded in Au­gust.

The high­est in­creases were recorded in prices of pas­sen­ger trans­port by air, med­i­cal ser­vices, hospital ser­vices, phar­ma­ceu­ti­cal prod­ucts, pas­sen­ger trans­port by road, mo­tor cars, ve­hi­cle spare parts among oth­ers.

On monthly ba­sis, the Septem­ber 2020 food in­fla­tion was high­est in Zam­fara (3.65%), Anam­bra (3.19%) and Kaduna (3.15%), while Nasarawa (0.51%) and

Abuja (0.15%) recorded the slow­est rise with Ondo record­ing price de­fla­tion or neg­a­tive in­fla­tion.

How­ever, an­a­lysts have said the in­fla­tion may close at 13.21% by year end due to the bor­der clo­sure and forex re­stric­tion on cer­tain im­port items.

Mosope Aru­biyi and Ibukun Omoyeni of Ve­tiva Re­search said in ad­di­tion, food in­fla­tion rose as flood­ing hin­ders food sup­ply while higher trans­port costs also in­fil­trated into food prices caus­ing a 16.7% rise in Septem­ber.

They raised their in­fla­tion fore­cast from 13.10% to 13.21% for 2020 as against the 11.39% for 2019. “We be­lieve food in­fla­tion will av­er­age 15.9% in 2020 (13.7% in 2019).”

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