Inflation hits 20.77%, food supply, FX crises worsen

According to the National Bureau of Statistics, Nigeria’s inflation rate reached a new high of 20.77 percent in September as food supplies, the foreign exchange crisis, and rises in import expenses deteriorated.

In August, the country’s inflation rate reached a 17-year high of 20.52 percent, which has already been surpassed by September’s figure.Infomation Guide Nigeria

This was revealed by the statistics agency in its ‘Consumer Price Index’ report, which was released on Monday. It identified the likely causes of the year-on-year increase in inflation as disruptions in food supply, increases in import costs due to chronic currency depreciation, and general increases in manufacturing costs.

It said, “Likely factors responsible for the decline in the monthly inflation rate (Month-on-month basis).

“Over the past two months, there has been a decline in headline inflation on a month-on-month basis due to a decline in the changes in the food index relative to the reference month index which is due to the present harvest season.

“Likely factors responsible for the increase in annual inflation rate (year-on-year basis). Disruption in the supply of food products

“Increase in import cost due to the persistent currency depreciation. General increase in the cost of production.”

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The NBS further said, “In September 2022, on a year–on- year basis, the headline inflation rate was 20.77 per cent. This was 4.14 per cent points higher compared to the rate recorded in September 2021, which was (16.63 per cent).

“This indicates that in the month of September 2022 the general price level was 4.14 per cent higher relative to September 2021. On a month-on-month basis, the Headline inflation rate in September 2022 was 1.36 per cent, this was 0.41 per cent lower than the rate recorded in August 2022 (1.77 per cent).”

The report further revealed that urban inflation is now 21.25 per cent while rural inflation rate was 20.32 per cent y-o-y in September.

The NBS revealed that food inflation rose to 23.34 per cent in September, y-o-y, because of increases in the price of bread, cereals, potatoes, yam, oil, fat, and other food products.

It stated, “The average annual rate of food inflation for the twelve-month period ending September 2022 over the previous twelve-month average was 19.36 per cent, which was a decline of 1.35 per cent points from the average annual rate of change recorded in September 2021 (20.71 per cent).”Jamb Result

“Why is it not coming down? Why is it going up? Is it decreasing the cost of doing business or increasing the cost of doing business? That is the critical issue. No matter how small the increase is, it’s not good. Every input that goes into your business has a cost, and when you are budgeting, you must have based your calculations on certain realities. Why are we having over 20 per cent inflation? Anything over 20 per cent is injurious to business health.”

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