Nigeria's inflation rises to 20.77% amid high import cost, soaring food prices

Nigeria’s inflation rises to 20.77% amid high import cost, soaring food prices

October 17

13:22 2022

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The consumer price index (CPI), which measures the rate of change in prices of goods and services, surged to 20.77 percent in September 2022, up from 20.52 percent in the previous month.

The National Bureau of Statistics (NBS) said this on Monday in its consumer price index (CPI) report for September 2022.

The figure represents the highest rate recorded since September 2005.

The bureau said the rate is 4.14 percent points higher compared to 16.63 percent recorded in September 2021, indicating an increase (year-on-year) in September 2022.

“On a month-on-month basis, the headline inflation rate in September 2022 was 1.36 percent, this was 0.41 percent lower than the rate recorded in August 2022 (1.77 percent),” the report reads.

“This means that in the month of September 2022, the headline inflation rate (month–on–month basis) declined by
0.41 percent, relative to August 2022.

“The percentage change in the average CPI for the twelve month period ending September 2022 over the average of the CPI for the previous twelve month period was 17.43 percent, showing a 0.60 percent increase compared to 16.83 percent recorded in September 2021.”

“On a year-on-year basis, in the month of September 2022, the urban inflation rate was 21.25 percent, which was 4.06 percent higher compared to the 17.19 percent recorded in September 2021.

“On a month-on-month basis, the urban inflation rate was 1.46 percent in September 2022, this was a 0.34 percent decline compared to August 2022 (1.79 percent).

“The corresponding twelve-month average for the urban inflation rate was 17.94 percent in September 2022. This was 0.53 percent higher compared to the 17.41 percent reported in September 2021.”

NBS explained that the accelerating inflation rate was likely caused by soaring food prices, disruption in the supply of food products, rise in import cost due to the persistent currency depreciation and general increase in the cost of production.

The report also said food inflation rose to 23.34 percent in the review month, an uptick compared to the 23.12 percent recorded in the preceding month.

The rise in the food index, NBS said, was caused by increases in prices of bread and cereals, food products, potatoes, yam and other tuber, oil and fat.