Evidently, the trend of spending more to get less by Nigerians has reached a new height following o.66 per cent spike in inflation rate in November December.
According to the National Bureau of Statistics (NBS) in the latest inflation report released on Tuesday, Nigeria’s inflation rate has climbed to a 31-month high, as it rose further to 14.89 per cent in November.
Inflation now stands at 14.89 per cent in November 2020 from 14.23 per cent in October 2020 on a year-on-year basis.
The country’s inflation has been on the rise since the country shut its land borders. The situation became worse due to the coronavirus pandemic that has affected the global economy.
The economy is yet to recover from the impacts of coronavirus and the plunge in crude prices, with the country currently in recession.
On a month-on-month basis, the Headline index increased by 1.6 per cent in November 2020. This is 0.06 per cent points higher than the rate recorded in October 2020 (1.54 per cent).
In the report, the composite food index rose to 18.30 per cent in October 2020 compared to 17.38 per cent in September 2020.
Food inflation
- The food index rose sharply by 18.3% in November 2020 compared to 17.38% in October 2020, representing 0.92% points higher than the preceding month.
- The closely watched component of the inflation index, rose by 2.04% in November 2020 on a month-on-month basis, up by 0.08% points from 1.96% recorded in October 2020.
- Meanwhile, the rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, yam and other tubers, Meat, Fish, Fruits, Vegetables, and Oils and fats.
Core inflation
- The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 11.05% in November 2020, declined by 0.09% when compared with 11.14% recorded in October 2020.
- On a month-on-month basis, the core sub-index increased by 0.71 percent in November 2020 representing a sharp 0.54% point decline when compared with 1.25% recorded in October 2020.
- The highest increases were recorded in prices of Passenger transport by air, Medical services, Hospital services, Repair of furniture, Passenger transport by road, Maintenance and repair of personal transport equipment, vehicle spare parts, Hairdressing salons and personal grooming establishments, Pharmaceutical products, Paramedical services and Motor cars.
Worst hit states
- In the month under review, Kogi State recorded the highest inflation rate at 19.87%, closely followed by Bauchi State with an inflation rate of 19.67%. Also, Zamfara State recorded an inflation rate of 17.3% while Sokoto and Yobe States recorded 16.97% and 16.44% respectively.
- In terms of food index, Kogi State also recorded the highest rise in inflation rate, followed by Zamfara (20.6%), Sokoto (20.6%) while Ebonyi and Plateau State recorded food inflation of 20.2% and 19.7% respectively.