By Charles Ike-Okoh
TUE 16 FEB, 2021-theGBJournal- Nigeria’s inflation soars again in January 2021 touching 16.47%, as food prices touch record level.
Consumer prices now stand at their highest level since April 2017 with general cost of living accelerating in recent months, pilling pressure on consumer spending.
The latest inflation number is 0.71 percent points higher than the rate recorded in December 2020 (15.75), according to latest data from the National Bureau of Statistics (NBS). On month-on-month basis, the headline index increased by 1.49 percent in January 2021, a 0.12 percentage points lower than the rate recorded in December 2020 (1.61 percent).
Food prices unsurprisingly sustained its upward trajectory, as food inflation accelerated to 20.57 percent from 19.56 percent recorded in December 2020, dragged by low base effects, the sustained impact of the poor harvest season, high food distribution costs, and lingering security challenges in food-producing regions.
The highest price increases were recorded in Bread and cereals, Potatoes, Yam and other tubers, Meat, Fruits, Vegetable, Fish and Oils and Fats.
On month-on-month basis, the food sub-index increased by 1.83 percent in January 2021, down by 0.22 percent points from 2.05 percent recorded in December 2020. The average annual rate of change of the Food sub-index for the twelve-month period ending January 2021 over the previous twelve-month average was 16.66 percent, 0.49 percent points higher than the average annual rate of change recorded in December 2020 (16.17 percent).
Core inflation also stayed on the climb advancing by 0.48 percent when compared with 11.37 percent recorded in December 2020 to 11.85 percent in January 2021. On month-on-month basis, the core sub-index increased by 1.26 percent in January 2021. According to the NBS, this was up by 0.16 percent when compared with 1.10 percent recorded in December 2020.
The most pressure is felt in Passenger transport by air, Medical services, Hospital services, Passenger transport by road, Pharmaceutical products, Paramedical services, Repair of furniture, Vehicle spare parts, Motor cars, Miscellaneous services relating to the dwelling, Maintenance and repair of personal transport equipment.
The average 12-month annual rate of change of the index was 10.52 percent for the twelve-month period ending January 2021. This was 0.21 percent points higher than 10.31 percent recorded in December 2020.
In January 2021, all items inflation on year on year basis was highest in Kogi (21.38%), Oyo (20.17%) and Bauchi (19.52%), while Kwara (13.96%), Abuja (12.96%) and Cross River (12.22%) recorded the slowest rise in headline Year on Year inflation.
On month on month basis however, January 2021 all items inflation was highest in Oyo (4.28%), Ebonyi (3.95%) and Lagos (3.33%), while Abuja, Edo and Cross River recorded price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).
Food Inflation was highest in Kogi (26.64%), Oyo (23.69%) and River (23.49%), while Ondo (17.20%), Abuja (16.73%) and Bauchi (16.37%) recorded the slowest rise. On month on month basis however, January 2021 food inflation was highest in Oyo (4.47%), Lagos (3.86%) and River (3.11%), while Akwa Ibom (0.25%) and Bayelsa (0.13%) recorded the slowest rise with Edo 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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