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Nigeria’s Inflation Rate Hits 20.77% In September

The National Bureau of Statistics (NBS), the coordinating agency for Nigeria’s statistical system, reported on Monday that the nation’s Consumer Price Index (CPI), which measures inflation rate, surged to 20.77 percent in September year-on-year (Y-o-Y), representing the highest rate in the past 17 years.

The statistics agency, in its latest Consumer Price Index (CPI) September 2022 Report, indicated that the September general price level (inflation rate) was 4.14 percent points higher when compared to the 16.63 percent rate recorded in September 2021.

The report also reflected that on a month-on-month basis, the Headline inflation rate in September was 1.36%, which indicated a 0.41% lower than the 1.77 percent rate recorded in August 2022.

The Bureau further clarified: “This means that in the month of September 2022, the headline inflation rate (month–on–month basis) declined by 0.41%, relative to August 2022.

“The percentage change in the average CPI for the twelve month period ending September 2022 over the average of the CPI for the previous twelve month period was 17.43%, showing a 0.60% increase compared to 16.83% recorded in September 2021.

“The Increases were recorded in all COICOP divisions that yielded the Headline index”, the agency added.

It attributed the likely factors responsible for the decline in the monthly inflation rate (month-on-month basis) to the fact that over the past two months, there had 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 which is due to the present harvest season.

Similarly, the NBS hinged the likely factors responsible for the increase in annual inflation rate on year-on-year basis on disruption in the supply of food products, increase in import cost due to the persistent currency depreciation, and general increase in the cost of production.

A further analysis of the CPI report showed that on a year-on-year basis, in the month of September 2022, the urban inflation rate was 21.25 percent, which was 4.06% higher compared to the 17.19 percent recorded in the corresponding month of last year.

The Bureau also reported that on a month-on-month basis, the urban inflation rate was 1.46 percent in the month under review, representing 0.34% decline compared to the preceding month’s 1.79 percent.

According to the statistics agency, the corresponding twelve-month average for the urban inflation rate was 17.94 percent in September, indicating 0.53% higher compared to the 17.41 percent rate reported in September 2021.

On rural inflation, the report reflected that in September 2022 rural inflation rose to 20.32 percent on a year-on-year basis, which indicated 4.24 percent increase compared to 16.08 percent recorded in the corresponding month of last year.

The NBS clarified that on a month-on-month basis, the rural inflation rate in the month under review was 1.27 percent, down by 0.48% compared to the 1.75 percent reported in August 2022.

It added that the corresponding twelve-month average for the rural inflation rate in September was 16.94 percent, representing 0.68 percent higher compared to the 16.26 percent reported in September 2021.

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