The National Bureau of Statistics (NBS) has said in its September consumer price index (CPI) that inflation rate for the month stood at 20.77 per cent, a moderate increase on 20.52 per cent recorded in August.
The NBS which disclosed this in the report released on Monday (yesterday) attributed the likely cause to the upward swing to the disruption in the supply of food products, increase in import cost due to the persistent currency depreciation, and a general increase in the cost of production.
On a year–on–year basis, in September 2022, the headline inflation rate of 20.77 per cent was 4.14 per cent points higher compared to the rate recorded in September 2021, which was 16.63 per cent.
According to the NBS, “this indicates that in the month of September 2022 the general price level was 4.14 per cent higher relative to September 2021.
“On a month-on-month basis, the Headline inflation rate in September 2022 was 1.36 per cent, this was 0.41 per cent lower than the 1.77 per cent rate recorded in August 2022. This means that in the month of September 2022, the headline inflation rate, month-on-month basis declined by 0.41 per cent, relative to August 2022″.
The rise in September 2022 inflation rate to 20.77 per cent from 20.5 per cent recorded in August 2022, tends to defy the Central Bank of Nigeria (CBN) latest unanimous decision to increase the benchmark interest rate (monetary policy rate) to 15.5 per cent in a bid to check the rising rate of inflation in the country.
The decline in the all-items index on a month-on-month basis, that is over the two months was due to the changes in the food index relative to the reference month index which is due to the ongoing harvesting season.
The percentage change in the average CPI for all items index for the twelve months ending September 2022 over the average of the CPI for the previous twelve months period was 17.43 per cent, showing a 0.6 per cent increase compared to 16.83 per cent recorded in September 2021.
The food sub-index increased by 23.34 per cent on a year-on-year basis in September 2022; the inflation rate was 3.77 per cent higher compared to the 19.57 per cent rate recorded in September 2021.
The NBS stated that the rise in the food index was caused by increases in prices of bread and cereals, food products, potatoes, yam and other tubers, oil and fat.
On a month-on-month basis, the food inflation rate in September was 1.43 per cent, this was a 0.54 per cent decline compared to 1.98 per cent recorded in August 2022.
This decline was attributed to a reduction in prices of some food items like tubers, palm oil, maize, beans, and vegetables.
The average annual rate of food inflation for the twelve months ending September 2022 over the previous twelve-month average was 19.36 per cent, which was 1.35 per cent points decline from the average annual rate of change recorded in September 2021 (20.71%).
The index for all items less farm produce (Core inflation), which excludes the prices of volatile agricultural produce stood at 17.60 per cent in September 2022 on a year-on-year basis; the index rose by 3.86 percent when compared to 13.74 percent recorded in September 2021.
The consumer price index for urban consumers rose by 4.06 percent on a year-on-year basis, this means that in September 2022, the urban inflation rate was 21.25 percent higher, compared to the 17.19 percent recorded in September 2021, while on a month-on-month basis, the urban inflation rate was 1.46 per cent in September 2022, this shows 0.34 per cent decline compared to 1.79 per cent in August 2022.
The corresponding twelve-month average for the urban inflation rate was 17.94 per cent in September 2022, and this was 0.53 per cent higher compared to the 17.41 per cent reported in September 2021.
The inflation rate for rural consumers in September 2022 was 20.32 per cent on a year-on-year basis; this was 4.24 per cent higher compared to the 16.08 per cent recorded in September 2021.
On a month-on-month basis, the rural inflation rate in September 2022 was 1.27 per cent, down by 0.48 per cent compared to 1.75 per cent recorded in August 2022.
The corresponding twelve-month average for the rural inflation rate in September 2022 was 16.94 per cent, and this was 0.68 per cent higher compared to the 16.26 per cent recorded in September 2021.
The NBS stated that “on the states profiles, all item’s inflation rates for September 2022 on a year-on-year basis were highest in Kogi with 23.82 per cent, River 23.49 percent, Benue 22.78 percent, while Abuja recorded 17.87 percent, Borno 18.12 percent and Adamawa 18.42 percent recorded the slowest rise in headline Year-on-Year inflation”.
However, on a month-on-month basis, “the state all items index for September 2022, recorded the highest rate in Jigawa with 2.58 per cent, Yobe 2.22 percent, Benue (2.05 %), while Abuja had -0.72 percent, Sokoto -0.19 percent and Adamawa 0.25 percent recorded the slowest rise in inflation”.
