The National Bureau of Statistics (NBS) reported on Tuesday that the nation’s Consumer Price Index (CPI), which measures inflation, increased to11.28 percent (year-on-year) in September, representing a 0.05 percent rise when compared to the 11.23 percent of the preceding month.
The Bureau attributed the slight increase of the CPI to increases in all the indicators, which determined the headline index.
According to the report, food inflation rose to 13.31 percent in the month in review compared to 13.16 per cent in August while the core inflation declined to 9.80 percent from the 10.0 percent it reached in the August.
A further analysis of the report showed that month-on-month, the headline index slowed to 0.84 percent from 1.05 per cent in August
A further disaggregation of inflation trend on urban and rural sectors basis indicated that urban inflation rate increased by 11.70 percent (year-on-year) in September from 11.67 percent in the previous month.
Similarly, the rural inflation increased by 10.92 percent during the month in review from 10.84 percent in the preceding month.
The official statistics producing and reporting agency stated further that on a month-on-month basis, the urban index rose by 0.86 percent in September, down by 0.14 from 1.00 percent recorded in August, while the rural index also rose by 0.82 percent, down by 0.14 percent from the 0.96 percent in August.
It reported further that the corresponding twelve-month year-on-year average percentage change for the urban index was 13.58 percent in September, less than 13.95 percent reported in the previous month, while the corresponding rural inflation rate was 12.80 percent compared to 13.21 percent in August.
The latest price surge in the economy has confirmed the Central Bank of Nigeria (CBN’s) recent concerns about the likelihood inflation spike ahead of the February 2019 general elections.
A Deputy Governor of the apex bank, Dr. Joseph Nnanna, was quoted as confirming that the CBN will tighten policy to respond to higher inflation based on the scope to raise rates before the elections.
He clarified: “The central bank is still in the mood for tightening. How fast are we going to tighten is what members haven’t agreed upon.”
