Nigeria’s Inflation Rate Increases at Faster Pace in October

The price of goods and services grew faster in Africa’s largest economy, Nigeria, in the month of October, according to the latest data from the National Bureau of Statistics (NBS).

Consumer Price Index (CPI), which measures inflation rate, increased by 15.99 percent year-on-year in October 2021, representing a 1.76 percent higher than the 14.23 percent recorded in October 2020.

On a monthly basis, inflation grew by 0.98 percent in the month of October, a 0.17 percent rate lower than the 1.15 percent achieved in the month of September.

The food index also rose at a faster pace in October, increasing by 0.91 percent in October, down by 0.35 percent points from 1.26 percent recorded in September 2021.

This rise in the food index was caused by increases in prices of Food product n.e.c, Coffee, tea and cocoa, Milk, cheese and eggs, Bread and cereals, Vegetables and Potatoes, yam and other tuber.

The 12 months average food sub-index stood 20.75 percent, 0.04 percent points from the average annual rate of change recorded in September 2021 (20.71) percent.

“The urban inflation rate increased by 16.52 percent (year-on-year) in October 2021 from 14.81 percent recorded in October 2020, while the rural inflation rate increased by 15.48 percent in October 2021 from 13.68 percent in October 2020,” NBS stated.

“On a month-on-month basis, the urban index rose by 1.02 percent in October 2021, down by 0.19 percentage point the rate recorded in September 2021 (1.21) percent, while the rural index also rose by 0.95 percent in October 2021, down by 0.15 percentage point the rate that was recorded in September 2021 (1.10) percent.

“The twelve-month year-on-year average percentage change for the urban index is 17.53 percent in October 2021. This is higher than 17.41 percent reported in September 2021, while the corresponding rural inflation rate in October 2021 is 16.39 percent compared to 16.26 percent recorded in September 2021.”