Inflation rate falls to 15.99% in October, lowest in 10 months

Nigeria’s inflation rate, the average change in prices of goods and services for the month of October 2021 dropped further to 15.99 per cent from 16.63 per cent recorded in September 2021. This is according to the recently released Consumer Price Index report, released by the National Bureau of Statistics (NBS).

Similarly, the composite food index dropped by 1.23 per cent points to 18.34 per cent  in October from 19.57 per cent recorded in the previous month, while core inflation which excludes the prices of volatile agricultural produce stood at 13.24 per cent in October 2021, down by 0.51% points when compared with 13.74 per cent recorded in September 2020.

In analysing price movements, analysts at Proshare said, it is important to note that the CPI is weighted by consumption expenditure patterns which differ across states. Accordingly, the weight assigned to a particular food or non-food item may differ from state to state making interstate comparisons of consumption basket inadvisable and potentially misleading

In October 2021, all items inflation on year-on-year basis was highest in Bauchi (19.63 per cent), Gombe (19.33 per cent) and Jigawa (19.07 per cent), while Kwara (11.82 per cent), Edo (13.31 per cent) and Rivers (13.66 per cent) 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 per cent), Benue/Kebbi (2.02 per cent) and Yobe (1.71 per cent), While the slowest rise in inflation for all item were Adamawa (0.18 per cent), Kano and Kogi recording price deflation or negative inflation (general decrease in the prices of goods and services or a negative inflation rate).