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Nigeria’s Inflation hits 14.3 percent as food prices skyrocket

admin | November 16, 2020

Nigeria’s inflation rate rose further in June 2020 to 12.56% (year-on-year), 0.16% points higher than the rate recorded in May 2020 (12.4%). This is according to the latest CPI report, released by the Nigerian Bureau of Statistics.

The report also showed that composite food index rose to 15.18% compared to 15.04% recorded in May 2020 while Core inflation, which excludes the prices of volatile agricultural produce that stood at 10.13% in June 2020 compared to 10.12% recorded in May 2020.

Food inflation

The composite food index stood at 15.18%, 0.14% points higher compared to 15.04% recorded in May 2020. Also, On month-on-month basis, the food sub-index increased by 1.48% in June 2020, up by 0.06% points from 1.42% recorded in May 2020.

This rise in the food index was caused by increases in prices of Bread and Cereals, Potatoes, Yam and other tubers, Fruits, Oils and Fats, Meat, Fish and Vegetables.

Core inflation

The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural
produce stood at 10.13% in June 2020, up by 0.01% when compared with 10.12% recorded in May 2020.

On month-on-month basis, the core sub-index increased by 0.86% in June 2020. This was down by 0.02% when compared with 0.88% increase recorded in May 2020.

Inflation drivers: The highest increases were recorded in prices of Medical services, Hospital services, Passenger transport by road, Pharmaceutical products, Motor cars, Paramedical services, Maintenance and repair of personal transport equipment, Bicycles, Motor cycles, Vehicle spare parts and Other services in respect of personal transport equipment.

Worst hit states

In June 2020, all items inflation on year on year basis was highest in Bauchi (15.02%) followed by Sokoto state (14.88% rate), Ebonyi (14.6%) others include Plateau (14.49%) and Taraba state (13.95%).

On the other hand, Kwara state (10.03%) recorded the least all items inflation rate (year-on-year) followed by Lagos (10.78%). Others on the list include; Cross River (10.95%), Abuja (11.02%) and Borno (11.11%).

In terms of food inflation on a year on year basis, Sokoto state (17.88%) recorded the highest followed by Plateau (17.04%) and Abuja (16.82%), while Bauchi (12.86%), Ogun (13.18%), and Lagos (13.46%) recorded the slowest rise.

What this latest inflation rate means is that the purchasing power of consumers has further worsened and their ability to afford the same quantity of goods or services has reduced significantly.

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