Nigeria’s Consumer Price Index (CPI), which measures the inflation rate in the economy, decelerated for the seventh consecutive month in October 2021, sliding to 15.99 percent from the16.63 percent rate recorded in the preceding month.
Briefing the media on the latest inflation figures on Monday in Abuja, Statistician General of the Federation and Chief Executive Officer of the National Bureau of Statistics (NBS), Dr. Simon Harry, attributed the sliding trend in the general price level in the economy largely to improved food production and recent policy measures by the government to sustain the nation’s economic recovery.
While restating the Bureau’s commitment to timely production and publication of accurate statistical data on various areas to guide governments’ policy formulation and implementation as well other economic stakeholders’ planning and decision making, the Statistician General stressed that all data being produced by the agency were evidenced-based and factual realities from regular surveys in the areas covered from time to time.
Speaking specifically on the October 2021 inflation rate and how the figures were computed by the Bureau, he clarified: “The inflation rate in Nigeria has maintained a consecutive decline in the year-on-year Headline inflation rate for a period of seven (7) months, from the month of March 2021 with an interesting trajectory as follows: March,, 18.17%; April, 18.12%; May 17.93%; June, 17.75%; July, 17.38%; August, 17.01%; September, 16.63%
“It may interest you to note this trend has continued up to the month of October 2021 with the inflation rate for all items (Headline Inflation) for the month increasing to 15.91 percent, year-on-year, when compared to the corresponding month in 2020 which recorded 14.23 percent.
“In the case of month-on-month change, there was a decline from 16.63 percent recorded in the month of September, 2021 to 15.99 percent in October 2021. This is 0.64 percent points lower than the rate recorded in September 2021.
“With this, it means that the declining trend for about seven months portends a positive signal given the favourable economic conditions, the rate of inflation in Nigeria would come down to a bearable level. On month-on-month basis, the Headline index increased by 0.98 percent in October 2021. This is 0.17 percent points lower than the rate recorded in September 2021 which is 1.15 percent”, Harry added.
Further expatiating on the price trends of the items, he disclosed that the composite food index increased by 18.34% in October from 19.57% recorded in the previous month, representing 1.23% points drop, while core inflation, which excludes the prices of volatile agricultural produce, stood at 13.24% in October 2021 from the 13.74% recorded in the preceding month, slowing down by 0.51% points
The Statistician General attributed the rise in the food index to increases in prices of food products coffee, tea and cocoa, milk, cheese and eggs, bread and cereals, vegetables and potatoes, yam and other tubers.
He further reported that the core inflation in the month of October was driven by an increase in the price of gas, fuels and lubricants for personal transport equipment, vehicle spare parts, and non-durable household goods.
In addition, Harry linked other drivers of the core inflation to solid fuel, passenger transport by road, passenger transport by air, garments, cleaning, repair and hire of clothing, major household appliances whether electric or not, wine, clothing materials, other articles of clothing and clothing accessories and liquid fuel.
While thanking the media for supporting the statistical agency’s information dissemination agenda over the years, the Statistician General also urged the media, as partners, to always ensure that reportage of its activities, particularly statistical data reports is accurate to properly enlighten the users and general public on the survey findings.
