MON 15 NOV, 2021-theGBJournal- The National Bureau of Statistics (NBS) Monday published October Inflation report showing Nigeria’s headline inflation decelerated for the seventh consecutive month to 15.99% y/y in October 2021 (September: 16.63% y/y), 33bps lower than Cordros’ estimate (16.32% y/y) and 21bps lower than Bloomberg’s median consensus estimate (16.20% y/y), with deviations stemming from both the food and core baskets.
On a month-on-month basis, headline inflation moderated by 17bps to 0.98%.
Food inflation also sustained its deceleration for the seventh consecutive month, declining by 123bps to 18.34% y/y in October 2021 (September: 19.57% y/y). Notably, the most significant price increases were recorded in Coffee, tea and cocoa, Milk, cheese and eggs, Bread and cereals, Vegetables and potatoes, Yam and other tuber. On a month-on-month basis, food inflation reversed last month’s increase, as it rose by 0.91% in October (September: 1.26% m/m).
Food inflation also sustained its deceleration for the seventh consecutive month, declining by 123bps to 18.34% y/y in October 2021 (September: 19.57% y/y).
The most significant price increases were recorded in Coffee, tea and cocoa, Milk, cheese and eggs, Bread and cereals, Vegetables and potatoes, Yam and other tuber.
On a month-on-month basis, food inflation reversed last month’s increase, as it rose by 0.91% in October (September: 1.26% m/m).
Similarly, core inflation slowed by 51bps to 13.24% y/y (September: 13.74% y/y). Pressures were most significant in the prices of Gas, fuels and lubricants for personal transport equipment, Vehicle spare parts, Non-durable household goods, Solid fuel, Passenger transport by road, Passenger transport by air, Garments, Cleaning, repair and hire of clothing, Major household appliances whether electric or not, Wine, Clothing materials, other articles of clothing and clothing accessories and Liquid fuel.
Compared to the previous month, the core index moderated by 45bps to 0.80% m/m in October.
For State profile, in October 2021, all items inflation on year-on-year basis was highest in Bauchi (19.63%), Gombe (19.33%) and Jigawa (19.07%), while Kwara (11.82%), Edo (13.31%) and Rivers (13.66%) recorded the slowest rise in headline year-on-year inflation.
On month-on-month basis however, October 2021, recorded the highest increases in Cross River (2.14%), Benue/Kebbi (2.02%) and Yobe (1.71%), While the slowest rise in inflation for all item were Adamawa (0.18%), Kano and Kogi recording price deflation or negative inflation (general decrease in the prices of goods and services or a negative inflation rate).
In October 2021, food inflation on a year on year basis was highest in Kogi (23.69%), Gombe (23.29%) and Jigawa (21.91%), while Edo (13.16%), Rivers (14.46%) and Adamawa (15.42%) recorded the slowest rise in year on year food inflation.
On month-on-month basis however, October 2021 food inflation was highest in Kebbi (2.29%), Yobe (2.23%) and Akwa Ibom (2.16%), while Kano, Kogi, Osun and Oyo recorded price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).
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