TUE, 15 NOV, 2022-theGBJournal| Nigeria’s headline inflation raced to 21.09% in October from 20.77% in September, despite recent rate increases by the Central Bank of Nigeria.
The outturn is 22bps above Cordros’ estimate (21.31% y/y) and 21bps higher than Bloomberg’s median consensus estimate (21.30% y/y). However, on a month-on-month basis, headline inflation moderated by 11bps to 1.24%.
The National Bureau of Statistics (NBS), published the latest inflation data today and attributes the rise to disruption in the supply of food products, increase in cost of importation due to the persistent currency depreciation and a general increase in the cost of production, for instance, increase in energy cost.
The food inflation rate in October 2022 was 23.72% on a year-on-year basis, from 23.34% y/y (August: 23.12% y/y), which was 5.39% higher compared to the rate recorded in October 2021 (18.34%). The presure in food inflation, according to the NBS was caused by increases in prices of Bread and cereals, Food products n.e.c, Potatoes, yams and other tubers, oil and fat.
Similarly, Core inflation, which excludes the prices of volatile agricultural produce stood at 17.76% in October 2022 on a year-on-year basis; up by 4.52%
when compared to 13.24% recorded in October 2021.
On a month-on-month basis, the core inflation rate was 0.93% in October 2022. It was 1.59 % in September 2022. The highest increases were recorded in prices of Gas, Liquid fuel, Passenger transport by Air, Solid fuel, and vehicles spare parts.
The average 12-month annual inflation rate was 15.31% for the twelve months ending October 2022; this was 2.59% points higher than the 12.73% recorded in October 2021.
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