Nigeria’s Inflation Rate Accelerates to 20.52%
Nigeria’s headline inflation rate accelerates by 88 basis points to 20.52% year on year in September 2022 from 19.64% in August, according to the statistics office. Price level in Africa’s largest economy by gross domestic product has been worsening due to internal and external market dislocations.
According to the National Bureau of Statistics report, an uptrend in the consumer price index was driven by food index. The current inflation reading is the highest print since September 2005 when the consumer price index settled at 24.32%.
The outturn is in line with Cordros’ 20.52% estimate for the month and two basis points higher than Bloomberg’s median consensus estimate of 20.50% year on year. READ: Nigeria’s Inflation Rate Accelerates to 19.64%
On a month-on-month basis, headline inflation eased by five basis points to 1.77%, according to data from the statistics office. In September, food inflation rose to its highest level since October 2005 when it printed at 24.56%, increasing by 110 basis points to 23.12% year on year.
It advanced ahead July figure when it rested at 22.02%. Notably, the rise in food inflation was caused by increased prices of Bread and cereals, Food products, Potatoes, yams and other tubers, fish, meat, oil and fat.
On a month-on-month basis, food inflation settled at 1.98%, relative to the 2.04% m/m recorded in the previous month. Similarly, the core inflation rose by 94 basis points to 17.20% as against 16.26% reported last month.
This is the highest level since January 2017 when it settled at 17.87% year on year.
NBS reveals that pressures were most significant in prices of Gas, Liquid fuel, Solid fuel, Passenger transport by road, Passenger transport by Air, fuel and lubricants for personal transport equipment, Cleaning, Repair and Hire of clothing.
Compared to the previous month, the core index moderated by 17 basis points to 1.75% month on month in August 2022. # Nigeria’s Inflation Rate Accelerates to 20.52%
