Inflation worsens to 17.33%; food, air transport, hospital bills, others to blame

Inflation in Nigeria

Inflation worsens to 17.33%; food, air transport, hospital bills, others to blame


 

Barely 24 hours after the National Bureau of Statistics revealed the worsening unemployment case in Nigeria, the custodian of Nigerian statistics has dropped another shocking data on the consumer price index (CPI) which measures inflation in the country.

According to the latest CPI report for February, 2021, inflation increased by 17.33 per cent (year-on-year) in February 2021. This is 0.86 per cent points higher than 16.47 per cent rate recorded in January.

Increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) is divisions that yielded the Headline index.

On month-on-month basis, the headline index increased by 1.54 per cent in February 2021, this is 0.05 per cent rate higher than the rate recorded in January 2021 (1.49 per cent.

The percentage change in the average composite CPI for the twelve months period ending February 2021 over the average of the CPI for the previous twelve months period was 14.05 per cent, showing 0.43 per cent point from 13.62 per cent recorded in January 2021.

The urban inflation rate increased by 17.92 per cent (year-on-year) in February 2021 from 17.03 per cent recorded in January 2021, while the rural inflation rate increased by 16.77 per cent in February 2021 from 15.92 per cent in January 2021.

On a month-on-month basis, the urban index rose by 1.58 per cent in February 2021, up by 0.06 the rate recorded in January 2021, while the rural index also rose by 1.50 per cent in February 2021, up by 0.04 the rate that was recorded in January 2021 (1.46) per cent.

The corresponding twelve-month year-on-year average percentage change for the urban index is 14.66 per cent in February 2021.

This is higher than 14.23 per cent reported in January 2021, while the corresponding rural inflation rate in February 2021 is 13.48 percent compared to 13.04 percent recorded in January 2021.

Food Index

The composite food index rose by 21.79 per cent in February 2021 compared to 20.57 per cent in January 2021.

This rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, yam and other tubers, Meat, Food products n.e.c, Fruits, Vegetable, Fish and Oils and fats.

On month-on-month basis, the food sub-index increased by 1.89 percent in February 2021, up by 0.06 percent points from 1.83 percent recorded in January 2021.

The average annual rate of change of the Food sub-index for the twelve-month period ending February 2021 over the previous twelve-month average was 17.25 percent, 0.59  percent points from the average annual rate of change recorded in January 2021 (16.66) percent.

All Items Less Farm Produce

The “All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 12.38 per cent in February 2021, up by 0.53 per cent when compared with 11.85 per cent recorded in January 2021.

On month-on-month basis, the core sub-index increased by 1.21 per cent in February 2021. This was down by 0.05 per cent when compared with 1.26 per cent recorded in January 2021.

The highest increases were recorded in prices of Passenger transport by air, Medical services, Miscellaneous services relating to the dwelling, Hospital services, Passenger transport by road, Pharmaceutical products, Paramedical services, Repair of furniture, Vehicle spare parts, Maintenance and repair of personal transport equipment, Motor cars, Dental services and Hairdressing salons and personal grooming establishment,

The average 12-month annual rate of change of the index was 10.77 per cent for the twelve-month period ending February 2021; this is 0.25 per cent points higher than 10.52 per cent recorded in January 2021.

State Profiles

In analysing price movements under this section, note that the CPI is weighted by consumption expenditure patterns which differ across states. Accordingly, the weight assigned to a particular food or non-food item may differ from state to state making interstate comparisons of consumption basket inadvisable and potentially misleading.

All Items Inflation

In February 2021, all items inflation on year on year basis was highest in Kogi (24.73%), Bauchi (22.92%) and Ebonyi (20.45%), while Enugu (14.73%), Kwara (14.25%) and Cross River (12.97%) recorded the slowest rise in headline Year on Year inflation.

On month on month basis however, February 2021 all items inflation was highest in Kogi (3.25%), Ondo (2.46%) and Kebbi (2.43%), while Kwara (0.84%), Kano (0.70%) and Oyo (0.38%) recorded the slowest rise in headline month on month.

Food Inflation

In February 2021, food inflation on a year on year basis was highest in Kogi (30.47%), Ebonyi (25.73%) and Sokoto (25.68%), while Gombe (19.32%), Bauchi (18.74%) and Akwa Ibom (18.70%) recorded the slowest rise .in year on year inflation.

On month on month basis however, February 2021 food inflation was highest in Kogi (3.34%), Ondo (3.33%) and Ebonyi (3.26%), while Benue and Niger (0.90%), Kano (0.70%) and Oyo (0.09%) recorded the slowest rise in month on month food inflation.