FRI 15 OCT, 2021-theGBJournal- The National Bureau of Statistics today released the September 2021 Consumer Price index (CPI) report, and in line with our expectation, Nigeria’s headline inflation decelerated for the sixth consecutive month to 16.63% y/y in September 2021 (August: 17.01% y/y).
The outturn is 14bps higher than Cordros’ estimate (16.49% y/y) with the largest deviation stemming from the food basket. On a month-on-month basis, headline inflation increased by 13bps to 1.15%.
Food inflation slowed by 73bps to 19.57% y/y in September 2021 (August: 20.30% y/y). Notably, the highest price increases were recorded in Oils and fats, Bread and cereals, Food products, Fish, Coffee, tea and cocoa, Potatoes, yam and other tuber and Milk, cheese and egg.
On a month-on-month basis, food inflation increased by 1.26% in September (August: 1.06% m/m).
On the other hand, core inflation increased by 33bps to 13.74% y/y (August: 13.41% y/y). Pressures were most significant in the prices of Gas, Household textile, Garments, Motor car, Game of chance, Major household appliances whether electric or not, Passenger transport by air, Hospital services, Other services in respect personal transport equipment, Wine, Clothing materials, Other articles of clothing and clothing accessories, Non-durable household goods.
Compared to the previous month, the core index increased by 47bps to 1.24% m/m in September.
Urban Inflation rate increased by 17.19% (year-on-year) in September 2021 from 17.59% recorded in August 2021, while the Rural Inflation rate increased by 16.08% in September 2021 from 16.45% in August 2021.
On a month-on-month basis, the Urban Index rose by 1.21% in September 2021, up by 0.15 the rate recorded in August 2021 (1.06%) while the Rural Index also rose by 1.10% in September 2021, up by 0.11% the rate that was recorded in August 2021 (0.99%).
For State profiles, the NBS report shows that All items inflation on year-on-year basis was highest in Kogi State at 20.82%, followed by Gombe State at 19.9% and Oyo State at 19.07%. While Yobe, Edo and Kwara States recorded the slowest rise in inflation year-on-year at 14.96%, 14.85% and 13.70% respectively.
On month-on-month basis however, September 2021, Ebonyi (3.42%), Kano (2.41%) and Rivers (1.88%) recorded the slowest rise with Zamfara, Benue and Cross River recording price deflation or negative inflation (general decrease in the prices of goods and services or a negative inflation rate).
Meanwhile, In September 2021, Food Inflation on a year-on-year basis was highest in Kogi (26.63%), Oyo (22.40%) and Gombe (22.16%), while Bauchi (16.35%), Yobe (16.33%) and River (15.97%) recorded the slowest rise in year-on-year Food Inflation.
On month-on-month basis however, September 2021 Food Inflation was highest in Kaduna (2.22%), Kano (2.17%) and Anambra (2.15%), while Benue (0.23%) and Kebbi (0.09%) recorded the slowest rise with Zamfara recording price deflation or negative inflation (general decrease in the general price level of food or a negative Food Inflation rate).
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