Nigeria's Inflation Rate Goes Down By 0.05 Percent

The National Bureau of Statistics (NBS), in its Consumer Price Index report, has revealed that Nigeria's inflation rate has reduced by 0.05 percent in April compared to March. While an inflation rate of 18.17% was recorded in March, it slipped to 18.12% in the succeeding month of April.

The NBS's Consumer Price Index report was released in Abuja on Monday and measures the average change in prices of goods and services for day-to-day living over time.

According to the report, the percentage change in the average composite of CPI for the one year ending in April over the average of the previous year's CPI was 15.04%. This represents a 0.48% increase over 14.55% recorded in March.

The report revealed that the composite food index went up 22.72% in April compared to 22.95% in March. Also adding, that on a month-on-month basis, the food sub-index increased by 0.99% in April, compared to the 1.90% recorded in March.

This increase in food index can be linked to the rise in prices of food staples like bread, eggs, milk, oils, yam, cereals, cocoa, etc.

According to the report, “All items less farm produce’’ or Core inflation, which doesn't include the prices of volatile agricultural produce stood at 12.74% in April, up by 0.07% when compared with 12.67% recorded in March.

When it comes to distribution, all-items inflation on a year-on-year basis was highest in Kogi State at 24.33%, followed by Bauchi and Sokoto states at 22.93% and 20.96% respectively.

Abia recorded 15.94% inflation and Kwara recorded slightly less at 15.70%. Katsina State recorded the slowest rise in headline year-on-year inflation at 15.58%.

On a month-on-month basis, however, “all-items’’ inflation was highest in Kebbi at 2.24%, Cross River at 1.99%, and Jigawa at 1.78%. 

Ebonyi recorded the slowest rise in headline inflation month-to-month at 0.12%, with Rivers and Ogun recording price deflation (negative inflation).

In terms of food inflation on a year-on-year basis, Kogi State recorded the highest again with a rate of 30.52%, followed by Ebonyi with 28.07% and Sokoto State with 26.90%.

The country's capital Abuja recorded 18.63%, while Akwa Ibom and Bauchi States recorded the slowest rise in year-on-year inflation with 18.51% and 17.64% respectively.

However, on a month-on-month basis, April food inflation was highest in Kebbi State and Ekiti States, at 2.46% and 2.42% respectively.

Abuja recorded the slowest rise in month-on-month food inflation at 0.05%, with Rivers and Ogun recording price deflation or negative inflation. 

The annual food inflation rate rose steadily from 13.28% in October 2018 to 23% in March this year reflecting the impact of low harvest due to the continued menace of herders on farms, and the impact of border closure which lasted from August 2019 to December 2020.

Some other factors influencing the food inflation rate include naira depreciation, an increase in the pump price of petroleum products, and an electricity tariff.