Inflation rate climbs to 14.23% as food prices ascend, Nigerians groan

Nigerians have continued to groan over the incessant increase in prices of food commodities across the nation.

The climb in food prices and other individual consumption has further increased the rate of inflation to 14.23% in October 2020.

According to figures released by the National Bureau of Statistics (NBC) on Monday, the country’s inflation increased again in October, moving up by 0.52% when compared to 13.71% recorded in September.

The consumer price index (CPI) report published Monday by the (NBS) showed that price increases were recorded in all divisions that yielded the headline index.

The composite food index rose by 17.38 percent in October 2020 compared to 16.66 percent in September 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, Vegetable, alcoholic and food beverages and Oils and Fats,” the report stated.

Analysis of the report showed that on a month-on-month basis, the headline index increased by 1.54 percent in October 2020, this is 0.06 percent rate higher than the rate recorded in September 2020 (1.48 percent).

The percentage change in the average composite CPI for the twelve months period ending October 2020 over the average of the CPI for the previous twelve months period was 12.66 percent, showing a 0.22 percent point rise from 12.44 percent recorded in September 2020.

The report revealed that urban inflation rate increased by 14.81 percent (year-on-year) in October 2020 from 14.31 percent recorded in September 2020, while the rural inflation rate increased by 13.68 percent in October 2020 from 13.14 percent in September 2020.

On a month-on-month basis, the urban index rose by 1.60 percent in October 2020, up by 0.04 from 1.56 percent recorded in September 2020, while the rural index also rose by 1.48 percent in October 2020, up by 0.08 from the rate recorded in September 2020 (1.40 percent).

The corresponding twelve-month year-on-year average percentage change for the urban index is 13.29 percent in October 2020.

This is higher than 13.07 percent reported in September 2020, while the corresponding rural inflation rate in October 2020 is 12.09 percent compared to 11.86 percent recorded in September 2020.

On food inflation, analysis showed that on a month-on-month basis, the food sub-index increased by 1.96 percent in October 2020, up by 0.08 percent points from 1.88 percent recorded in September 2020.

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