Headline Inflation Rate Falls to 15.40%

Headline Inflation Rate Falls to 15.40%

Headline inflation rate reading in Nigeria has fallen to 15.40% for November readings, which is 59 basis points lower than 15.99 per cent recorded in October 2021.

In the latest report from the National Bureau of Statistics, the office said the consumer price index, (CPI) which measures inflation increased by 15.40 per cent year on year in November 2021.

This is 0.51 per cent points higher than the rate recorded in November 2020 when the inflation rate was 14.89 per cent, NBS said, noting that increases were recorded in all classification of individual consumption by purpose (COICOP) divisions that yielded the headline index.

On a month-on-month basis, the Headline index increased by 1.08 per cent in November 2021, this is a 0.10 per cent rate higher than the rate recorded in October 2021 (0.98) per cent.

The percentage change in the average composite CPI for the twelve months ending November 2021 over the average of the CPI for the previous twelve months period was 16.98 per cent, showing 0.02 per cent point from 16.96 per cent recorded in October 2021.

The urban inflation rate increased by 15.92 per cent (year-on-year) in November 2021 from 15.47 per cent recorded in November 2020, while the rural inflation rate increased by 14.89 per cent in November 2021 from 14.33 per cent in November 2020.

On a month-on-month basis, the urban index rose by 1.12 per cent in November 2021, up by 0.10 the rate recorded in October 2021 (1.02) per cent, while the rural index also rose by 1.04 per cent in November 2021, up by 0.09 the rate that was recorded in October 2021 (0.95) per cent.

The corresponding twelve-month year-on-year average percentage change for the urban index is 17.55 per cent in November 2021.

This is higher than 17.53 per cent reported in October 2021, while the corresponding rural inflation rate in November 2021 is 16.42 per cent compared to 16.39 per cent recorded in October 2021.

The composite food index rose by 17.21 per cent in November 2021 compared to 18.30 per cent in November 2020.

This rise in the food index was caused by increases in prices of Bread and cereals, Fish, Food product, Potatoes, yam and other tubers, Oil and fats, Milk, cheese and eggs and coffee, tea and cocoa.

On a month-on-month basis, the food sub-index increased by 1.07 per cent in November 2021, up by 0.16 per cent points from 0.91 per cent recorded in October 2021.

The average annual rate of change of the Food sub-index for the twelve months ending November 2021 over the previous twelve-month average was 20.62 per cent, 0.13 per cent points lower from the average annual rate of change recorded in October 2021 (20.75 per cent).

Core inflation, which excludes the prices of volatile agricultural produce stood at 13.85 per cent in November 2021, up by 0.61 per cent when compared with 11.05 per cent recorded in November 2020.

On a month-on-month basis, the core sub-index increased by 1.26 per cent in November 2021. This was down by 0.46 per cent when compared with 0.80 per cent recorded in October 2021.

The highest increases were recorded in prices of Gas, Liquid fuel, Other services, Garments, Vehicle spare parts, Passenger transport by road, Non-durable household goods, Jewellery clocks and watches, Passenger transport by air, Pharmaceutical products, Appliances, articles and products for personal care, cleaning, repair and hire of clothing and Fuels and lubricants for personal transport equipment.

The average 12-month annual rate of change of the index was 12.96 per cent for the twelve months ending November 2021; this is 0.23 per cent points higher than the 12.73 per cent recorded in October 2021.

In November 2021, all items inflation on year on year basis was highest in Gombe (18.54%), Jigawa (17.54%) and Nasarawa (17.43%), while Kwara (11.73%), River (13.36%) and Edo (13.50%) recorded the slowest rise in headline Year on Year inflation.

On month on month basis, however, November 2021, recorded the highest increases in Cross River (2.38%), Enugu (1.94%) and Ekiti (1.89%), while Bauchi (0.10%), Akwa Ibom (0.22%) and Ebonyi (0.38%) recorded the slowest rise in headline month on month inflation.

Food Inflation

In November 2021, food inflation on a year on year basis was highest in Gombe (21.83%), Kogi (21.09%) and Nasarawa (20.48%), while Edo (14.12%), Rivers (14.31%) and Osun (14.45%) recorded the slowest rise in year on year food inflation.

On month on month basis, however, November 2021 food inflation was highest in Enugu (2.59%), Imo (2.31%) and Ekiti (2.01%), while Jigawa (0.27%), Ogun (0.36%) recorded the slowest rise in inflation on a month on month with Akwa Ibom recording price deflation or negative inflation (decrease in the general price level of food or a negative food inflation rate).