By Ade Jacobs
Nigeria’s inflation rate has increased to 15.75, the National Bureau of Statistics (NBS) has revealed in its latest report.
This is the highest in three years, the NBS said, compared to year-on year 2020 December figure which stood at 14. 86 per cent.
The Bureau, in the latest Consumer Price Index report released on Friday, January 15, 2021, said city inflation stood at 16.5 per cent; core inflation 11.37 per cent and food inflation stood at 19.56 per cent.
It said the latest figure is 0.86 per cent points higher than the rate of 14.89 per cent recorded in November 2020.
It also stated that food inflation rose by 19.56 per cent in December compared to 18.3 per cent recorded in the previous month, while core inflation stood at 11.37 per cent, up by 0.32 per cent when compared to 11.06 per cent recorded in November 2020.
Speaking on the NBS reports, Tilewa Adebayo, Chief Executive Officer, CFG Advisers said the inflation rate has become very alarming at a time the federal government is trying to stabilize the economy following the hit from COVID 19.
He said the Central Bank of Nigeria, CBN, must do everything to bring the rising inflation down, adding that “the apex bank has done it before.”
He urged the apex bank to ensure that all monetary and fiscal policies set for the year are implemented to the letter to turn around the situation, noting that Nigerians should not expect to see any changes in the economy until the 3rd and 4th quarter of the year.
Nigeria’s inflation rate has been on the rise since September 2019, peaking at 14.89 per cent in November last year.
The NBS, had last month, raised alarm over the 14th consecutive monthly rise in Headline inflation since September 2019 when it stood at 11.24 per cent, particularly food inflation which rose by 0.72 percent point in October to 17.38 per cent from 16.66 percent in September.
According to NBS ”The consumer price index, (CPI) which measures inflation increased by 14.23 per cent (year-on-year) in October 2020. This is 0.52 per cent points higher than the rate recorded in September 2020 (13.71 percent). Increases were recorded in all COICOP divisions that yielded the Headline index.
“On a month-on-month basis, the Headline index increased by 1.54 per cent in October 2020, this is 0.06 per cent rate higher than the rate recorded in September 2020 (1.48 per cent).
“The urban inflation rate increased by 14.81 percent (year-on-year) in October 2020 from 14.31 per cent recorded in September 2020, while the rural inflation rate increased by 13.68 per cent in October 2020 from 13.14 per cent in September 2020.”
It said the composite food index rose by 17.38 percent in October 2020 compared to 16.66 per cent in September 2020. The rise in the food index, it said, was caused by increases in prices of basic staples such as, bread and cereals, potatoes, yam, and other tubers, meat, fish, fruits, vegetables, alcoholic and food beverages, and oils and fats.