Inflation rate hits 30-month high at 13.7% - NBS

  • Inflation rate hits 30-month high at 13.7% - NBS

Inflation rate hits 30-month high at 13.7% - NBS

Pork price inflation slowed year-on-year as hog production rebounded and as the government increased sales of frozen pork from state reserves, said Dong Lijuan, senior statistician at the NBS.

The consumer price index rose 1.7% last month from a year earlier, following a 2.4% gain in August, the National Bureau of Statistics said Thursday.

According to the NBS, on a month-on-month basis, the headline index increased by 1.48 per cent in September 2020. This is 0.14 per cent rate higher than the 1.34 per cent rate recorded in the previous month. Classification of Individual Consumption According to Purpose (CIOCOP) has been used, which divided the prices basket to twelve main groups, started with "Food and Nonalcoholic beverages" group, and to end up with "Miscellaneous goods and Services" group.

There have been reports that the producer price index has risen a lot more than it was expected in September.

This was higher than 12.85 per cent reported in August 2020, while the corresponding rural inflation rate in September 2020 is 11.86 per cent compared to 11.66 per cent recorded in August 2020.

Food prices have begun to stabilise after months of huge rises fuelled by the swine fever, which ravaged pig herds across the country and sent the cost of pork rocketing, in turn pushing up demand for other meat.

Annual inflation in Nigeria rose in September for the 13th month in a row, hitting a more-than two-year high, as disruption to supply chains and services by the coronavirus pandemic continued to have an impact.

On a month-on-month basis, the headline index increased by 1.48 per cent in September 2020.

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The average annual rate of change of the Food sub-index for the twelve-month period ending September 2020 over the previous twelve-month average was 15.13 per cent, 0.26 per cent points from the average annual rate of change recorded in August 2020 (14.87 per cent).

"But the rebound in core consumer price inflation will still leave it relatively subdued and food price inflation looks set to drop back further in the near-term as pork supply continues to recover", they said. Economists in a Reuters poll had expected the index to decline 1.8% after a 2.0% drop in August. This is 0.14 percent rate higher than the rate recorded in August 2020 (1.34 percent).