….As Food Inflation Sustains Upswing Trend
The National Bureau of Statistics (NBS) reported on Tuesday that in September 2024, Nigeria’s Headline inflation rate rose to32.70% relative to the August 2024 headline inflation rate of 32.15%, representing an increase of 0.55% compared to the August 2024 Headline inflation rate.
The September CPI marked the first rise in three months, thereby breaking a streak of two consecutive declines.
The Bureau in its ‘CPI and Inflation Report September 2024’ report indicated that on a year-on-year basis, the Headline inflation rate was 5.98% points higher compared to the 26.72% rate recorded in September 2023.
It reported further that on a month-on-month basis, the Headline inflation rate in September 2024 was 2.52%, which was 0.30% higher than the 2.22% rate recorded in the preceding month, implying that in the month under review, the rate of increase in the average price level is higher than the rate of increase in the average price level in August 2024.
A further analysis of the CPI and Inflation Rate report reflected that the Food Sub-index inflation rate in September 2024 was 37.77% on a year-on-year basis, 7.13% points higher than the 30.64% rate recorded in the corresponding period of last year
The Bureau attributed the rise in Food inflation on a year-on-year basis to increases in prices of the following items Guinea Corn, Rice, Maize Grains, Beans, etc (Bread and Cereals Class), Yam, Water Yam, Cassava Tuber, etc (Potatoes, Yam & Other Tubers Class), Beer (Local and Foreign) (Tobacco Class), Lipton, Milo, Bournvita, etc (Coffee, Tea & Cocoa Class) and Vegetable Oil, Palm Oil etc (Oil & Fats Class).
Similarly, it added that the Food inflation rate on a month-on-month basis, in September 2024 was 2.64%, which shows a 0.27% increase compared to the 2.37% rate recorded in August 2024.
As it is with the year-on-year Food Sub-index inflation rate, the statistics agency linked the rise month-on-month is September this year to the rate of increase in the average prices of Beer (Local and Foreign) (Tobacco Class), Vegetable Oil, Groundnut Oil, Palm Oil etc. (Oil & Fats Class), Beef, Gizzard, Dried Beef etc. (Meat Class), Lipton, Milo, Bournvita, etc (Coffee, Tea & Cocoa Class) and Milk, Egg etc. (Milk, cheese and Eggs Class).
According to the NBS, the average annual rate of Food inflation for the twelve months ending September 2024 over the previous twelve-month average was 37.53%, higher by 11.88% points from the 25.65% average annual rate of change recorded in September last year.
On the “All items less farm produces and energy” or Core inflation, which excludes the prices of volatile agricultural produces and energy, the statistics agency reported that the rate rose to 27.43% in September this year on a year-on-year basis; up by 5.59% when compared to the 21.84% recorded in September 2023.
It clarified that the highest increases were recorded in prices of the following items, Rents (Actual and Imputed Rentals for Housing Class), Bus Journey intercity, Journey by motorcycle, etc. (under Passenger Transport by Road Class), and Accommodation Service, Laboratory service, X-ray photography, Consultation Fee of a medical doctor, etc. (under Medical Services Class).
Conversely, the NBS reported that on a month-on-month basis, the Core Inflation rate stood at 2.10% in September 2024, showing a decrease of 0.17% compared to 2.27% recorded in August 2024.
Also, the report revealed that the average twelve-month annual inflation rate was 25.64% as of the ending of September 2024, representing 6.09% points higher than the 19.55% recorded in the corresponding month of last year.
This is even as the Urban consumers’ annual inflation rate in September this year increased to 35.13% on a year-on-year basis and indicated an increase of 6.46% points higher compared to the 28.68% recorded in September 2023.
Similarly, the report also showed that the Urban month-on-month inflation rate increased to 2.67% in the month under review, showing a rise of 0.28% compared to 2.39% rate of August 2024 while the corresponding twelve-month average for the Urban inflation rate stood at 33.95% in September 2024, which was 9.84% points higher compared to the 24.10% reported in September 2023.
Also, the Rural areas’ Headline Inflation rate in September 2024 increased to 30.49% on a year-on-year basis in September this year, showing 5.55% higher compared to the 24.94% recorded in September 2023.
The Bureau further disclosed that on a month-on-month basis, the Rural inflation rate in September this year was 2.39%, representing 0.33% points higher when compared to the 2.06% rate in the preceding month
It noted that the corresponding twelve-month average for the Rural inflation rate in September 2024 was 29.76%, which was 7.97% higher compared to the 21.79% recorded in September 2023.
The analyses of the states’ profiles showed that the all-item index for September 2024, on a year-on-year basis was highest in Bauchi at 44.83% rate, followed by Sokoto at 38.74% rate and Jigawa at 38.39% rate, while Delta at 26.35% rate, Benue at 26.90% rate, and Katsina at 27.71% rate recorded the slowest rise in headline inflation on a year-on-year basis.
On the other hand, the NBS disclosed that on a month-on-month basis, September 2024 recorded the highest increases in Sokoto at 4.63% rate, Taraba at 4.07% rate, Anambra at 3.74% rate, while Kwara at 1.14% rate, Cross River at 1.78% rate and Lagos at 1.82%) rate recorded the slowest rise on month-on-month inflation.
The analysis of the food index at state levels in September 2024, on a year-on-year basis, recorded highest in Sokoto at 50.47% rate, Gombe at 44.09% rate, and Yobe at 43.51% rate while Kwara at 32.45% rate, Rivers at 32.80%) and Kogi at 32.83% rate recorded the slowest rise in Food inflation on a year- on-year basis.
The Bureau also reported that on a month-on-month basis, September 2024 Food inflation was highest in Sokoto at 5.94%, Taraba at 5.76%, and Bayelsa at 4.44% rate, while Kwara with 0.88% rate, Cross River with 1.29% rate and Kogi with 1.45% rate recorded the slowest rise in Food inflation.
