Nigeria’s Inflation Rate Hits 15.75% over Increase in Food Prices
Nigeria’s headline inflation rate for December, 2020 hits 15.75% from 14.89% reported a month earlier on sustained increase in food prices.
Rising 0.86% higher, data released by the National Bureau of Statistics (NBS) shows that the consumer price index, (CPI) which measures inflation increased to 15.75%.
According to NBS, increases were recorded in all Classification of Individual Consumption by Purpose divisions that yielded the headline index.
On month-on-month basis, the headline index increased by 1.61% in December 2020.
This 0.01% rate higher than the rate recorded in November 2020 when it printed at 1.60%.
It was reported that percentage change in the average composite CPI for the twelve months period ending December 2020 over the average of the CPI for the previous twelve months period was 13.25%.
This represents a 0.33% point increase over 12.92 % recorded in November 2020.
The urban inflation rate increased by 16.33 % in December 2020 from 15.47% recorded in November 2020, while the rural inflation rate increased by 15.20% in December 2020 from 14.33% in November 2020.
On a month-on-month basis, the urban index rose by 1.65% in December 2020, same as the rate recorded in November 2020.
Meanwhile the rural index also rose by 1.58% in December 2020, up by 0.02% above 1.56% recorded in November 2020.
The corresponding twelve-month year-on-year average percentage change for the urban index is 13.86% in December 2020.
NBS stated that this is higher than 13.55% reported in November 2020, while the corresponding rural inflation rate in December 2020 was 12.67% compared to 12.35% recorded in November 2020.
The composite food index rose by 19.56% in December 2020 compared to 18.30% in November 2020.
This rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, Yam and other tubers, Meat, Fruits, Vegetable, Fish and Oils and fats.
On month-on-month basis, the food sub-index increased by 2.05 % in December 2020, up by 0.01% points from 2.04% recorded in November 2020.
Read Also: Nigeria’s Monetary Policy Rate Sustains at 11.5%
Also, average annual rate of change of the Food sub-index for the twelve-month period ending December 2020 over the previous twelve-month average was 16.17%, 0.42% points higher than 15.75% recorded in November 2020.
The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 11.37% in December 2020, up by 0.32% when compared with 11.05% recorded in November 2020.
On month-on-month basis, the core sub-index increased by 1.10 % in December 2020. This was up by 0.39 % when compared with 0.71 % recorded in November 2020.
The highest increases were recorded in prices of Passenger transport by air, Medical services, Hospital services, Shoes and other footwear.
These include passenger transport by road, miscellaneous services relating to the dwelling, hairdressing salons and personal grooming establishments.
Other were repair of furniture, Vehicle spare parts, Pharmaceutical products, Motor cars, Maintenance and repair of personal transport equipment, Paramedical services, Motor cycle, Dental services and Bicycles.
The average 12-month annual rate of change of the index was 10.31% for the twelve-month period ending December 2020.
NBS said this is 0.17 % points higher than 10.14 % recorded in November 2020.
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