Nigeria’s inflation rate hits 14.23% in October 2020
From the 13.71per cent recorded in September 2020, Nigeria’s inflation rate jumped to 14.23per cent (year-on-year) in October 2020 according to statics released by the National Bureau of Statistics NBS Monday in Abuja.
The October report indicates a persistent increase in the inflationary trends in 14 months, being the highest recorded since March 2018. Also, on a month-on-month basis, the headline index increased by 1.54per cent in October 2020, this is 0.06per cent rate higher than the rate recorded in September 2020 (1.48per cent).
Experts believe that the direct implication of the worsening inflationary pressure indicates a persistent decrease in the purchasing power of consumers especially at a time when the economy is at the verge of slipping into recession, as indicated in the increases in price of major food items and service fees
The composite food index, a closely watched component rose by 17.38per cent in October 2020 as against to the 16.66per cent recorded in September 2020. On month-on-month basis, the food sub-index increased by 1.96per cent in October 2020, up by 0.08per cent points from 1.88per cent recorded in September 2020.
The major drivers of food inflation were increases recorded in the prices of bread, cereals, potatoes, yam and other tuber crops, meat, fish, fruits, vegetable, alcoholic and food beverages and oils and fats.
The “All items less farm produce” or core inflation, which excludes the prices of volatile agricultural produce stood at 11.14per cent in October 2020, up by 0.56per cent when compared with 10.58per cent recorded in September 2020.
The highest increases were recorded in prices of passenger transport by air, hospital and medical services, passenger transport by road, pharmaceutical products, motor cars, vehicle spare parts, maintenance and repair of personal transport equipment, hairdressing salons and personal grooming establishments, miscellaneous services relating to the dwelling, paramedical services and shoes and other footwear.
Details of the report show that Zamfara State recorded the highest rate in the month of October with a 17.69per cent increase (year-on-year), followed by Sokoto State (17per cent), Ebonyi (16.91per cent), Bauchi (16.73per cent), and Plateau State (16.69per cent). On the flip side, Cross River recorded 11.5per cent, followed by the federal capital, Abuja (11.84per cent), Lagos (11.95per cent), Ondo (12.33per cent) and Kwara State (12.5per cent).
In terms of the food index, Edo State led the list with 21.65per cent followed by Zamfara (20.88per cent), Kogi (20.58per cent), Sokoto (20.5per cent), and Plateau State (20.26per cent) while Ondo State recorded the lowest inflation rate with 14.23per cent followed by Ogun, Lagos, Bauchi and Gombe with 14.47per cent, 14.57per cent, 14.85% and 14.88per cent apiece.