The National Bureau of Statistics (NBS) has stated that the composite food index rose by 17.38 per cent in October 2020 compared to 16.66 per cent in September 2020.
The rise in the food index, the NBS noted in its Consumer Price Index (CPI) for the month of October was caused by increases in prices of Bread and cereals, Potatoes, Yam and other tubers, Meat, Fish, Fruits, Vegetable, alcoholic and food beverages and Oils and Fats.
On a month-on-month basis, the food sub-index increased by 1.96 percent in October 2020, up by 0.08 percent points from 1.88 percent recorded in September 2020.
The average annual rate of change of the Food sub-index for the twelve-month period ending October 2020 over the previous twelve-month average was 15.42 percent, representing a 0.29 percent points from the average annual rate of change recorded in September 2020 (15.13) percent.
The statistics bureau disclosed that on a year on year basis food inflation was highest in Edo (21.65%), Zamfara (20.88%) and Kogi (20.58%), while Lagos (14.57%), Ogun (14.47%) and Ondo (14.23%) recorded the slowest rise.
On month on month basis however, October 2020 food inflation was highest in Kwara (3.88%), Edo .
(3.81%) and Sokoto (3.65%), while Oyo (0.57%) and Jigawa (0.54%) and Taraba (0.29%) recorded the slowest rise on month on month inflation.
Meanwhile, the consumer price index, (CPI) which measures inflation increased by 14.23 percent (year-on-year) in October 2020.
This is 0.52 percent points higher than the rate recorded in September 2020 (13.71%).
On a month-on-month basis, the urban index rose by 1.60 per cent in October 2020, up by 0.04 from 1.56 per cent recorded in September 2020, while the rural index also rose by 1.48 per cent in October 2020, up by 0.08 from the rate recorded in September 2020 (1.40%).
The urban inflation rate increased by 14.81 per cent (year-on-year) in October 2020 from 14.31 percent 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.
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%).
Reacting to the CPI report earlier Tuesday, Uche Uwaleke, a Professor of the Capital market, noted that the effect of COVID’19 on the economy still lingers especially from supply chain disruptions.
This, he said, is responsible for the rise in the inflation figures.
According to him, other factors that fueled the rise include; continuous border closure, VAT increase and implementation of stamp duty as well as the high exchange rate especially in the parallel market.
“The increase in the pump price of fuel also contributed because according to the NBS, a major cause of core inflation came from increase in transport cost.
