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The inflation rate in Nigeria rose to 21.09 per cent in October from 20.77 per cent recorded in September 2022 amidst soaring food prices, indicating a new 17-year high.
The National Bureau of Statistics (NBS), which released the data on Tuesday said that food Inflation rose to 23.72 per cent in October 2022, from 23.34 per cent in September 2022.
In its Consumer Price Index (CPI) report, which measures the rate of change in prices of goods and services, the NBS said, “on a month-on-month basis, the headline inflation rate for October 2022 was 1.24 per cent, this was 0.11 per cent lower than the rate recorded in September 2022 (1.36 per cent). This means that in October 2022 the general price level for the headline inflation rate (month–on–month basis) declined by 0.11 per cent.”
The NBS stated, “In October 2022, on a year–on–year basis, the headline inflation rate was 21.09%. This was 5.09% points higher compared to the rate recorded in October 2021, which was 15.99%.
“This shows that the general price level for the headline inflation rate increased in October 2022 when compared to the same month in the preceding year (i.e., October 2021) by 5.09 per cent.”
The NBS noted that the percentage change in the average CPI for the 12 months ending October 2022 over the average of the CPI for the previous 12 months period was 17.86 per cent, showing a 0.91 per cent increase compared to the 16.96 per cent recorded in October 2021, stressing that “the increases were recorded in all COICOP divisions that yielded the Headline index”.
On the likely factors responsible for the decline in the monthly inflation rate (Month-on-month basis), the NBS further stated that over the past three months, there has been a decline in headline inflation on a month-on-month basis due to a decline in the changes in the food index relative to the reference month index due to the present harvesting season.
Also, on the likely factors responsible for the increase in the annual inflation rate (Year-on-Year basis), the NBS attributed them to “disruption in the supply of food products, increase in the cost of importation due to the persistent currency depreciation, and a general increase in the cost of production e.g increase in energy cost.”
According to the NBS, on a year-on-year basis, in October 2022, the urban inflation rate was 21.63 per cent, indicating 5.11 per cent higher compared to the 16.52 per cent recorded in October 2021, while on a month-on-month basis, the urban inflation rate was 1.33 per cent in October 2022, showing a 0.12 per cent decline compared to 1.46 per cent in
September 2022.
“The corresponding twelve-month average for the urban inflation rate was 18.38 per cent in October 2022. This was 0.85 per cent higher compared to the 17.53 per cent reported in
October 2021”, the NBS stated.
It added that the rural inflation rate in October 2022 was 20.57 per cent on a year-on-year basis; showing 5.09 per cent higher compared to the 15.48 per cent recorded in October 2021, while on a month-on-month basis, the rural inflation rate in October 2022 was 1.16 per cent, which was down by 0.11 per cent compared to 1.27 per cent in September 2022.
The corresponding 12-month average for the rural inflation rate in October 2022 was 17.38 per cent. This was 0.98 per cent higher compared to the 16.39 per cent recorded in October 2021.
The NBS pointed out that the food inflation rate in October 2022 was 23.72 per cent on a year-on-year basis, which was 5.39 per cent higher compared to 18.34 per cent recorded in October 2021.
The NBS attributed the rise in food inflation to increases in prices of Bread and cereals, Food products n.e.c, Potatoes, yams and other tubers, oil and fat.
“On a month-on-month basis, the food inflation rate in October was 1.23 per cent, this was a 0.21 per cent decline compared to the rate recorded in September 2022 (1.43%). This decline was attributed to the 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 October 2022 was 19.83 per cent, which was a 0.92 per cent points decline from the average annual rate of change recorded in October 2021 (20.75%)”, the NBS stated.
The ‘’All items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 17.76 per cent in October 2022 on a year-on-year basis; up by 4.52 per cent when compared to 13.24 per cent recorded in October 2021.
On a month-on-month basis, the core inflation rate was 0.93 per cent in October 2022, and 1.59 per cent in September 2022.
“The highest increases were recorded in prices of Gas, Liquid fuel, Passenger transport by Air, Solid fuel, and vehicles spare parts”, the NBS disclosed, noting that “the average 12-month annual inflation rate was 15.31 per cent for the twelve months ending October 2022; this was 2.59 per cent points higher than the 12.73 per cent recorded in October 2021.”
The NBS explained that in October 2022, all items’ inflation rate on a year-on-year basis was highest in Kogi at 25.15 per cent; Bauchi recorded 23.45 per cent, Ondo had 23.45 per cent, while Plateau had 19.02 per cent, Borno at 19.31 per cent and Nasarawa 19.39 per cent, recorded the slowest rise in headline Year-on-Year inflation.
The NBS stated, “On a month-on-month basis, however, October 2022, recorded the highest increases in Abuja 3.18 per cent, Kebbi 2.80 per cent, Sokoto 2.57 per cent, while Kwara -0.14 per cent, Kogi 0.06 per cent and Oyo 0.30 per cent recorded the slowest rise on month-on-month inflation”.
Food Inflation in October 2022, on a year-on-year basis, was highest in Kwara at 30.79 per cent, Kogi at 28.74 per cent and Imo at 28.64 per cent, while Kaduna had 19.96 per cent, Plateau at 20.17 per cent and Jigawa 20.42 per cent recorded the slowest rise in year-on-year food inflation.
The National Bureau of Statistics further explained that on a month-on-month basis, however, October 2022 food inflation was highest in Sokoto at 3.55 per cent, Yobe at 3.31 per cent and Kebbi at 3.16 per cent, while Kwara had -0.76 per cent, Kogi -0.55 per cent and Akwa Ibom -0.21 per cent, recorded the slowest rise on month-on-month inflation.
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