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Food inflation rises to 20.30%

Thursday, 16 September 2021


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The National Bureau of Statistics (NBS) has disclosed that bread, Cereals and others have pushed inflation to rise to 20.30 per cent in August compared to 21.03 per cent recorded in July 2021.

 

The NBS confirmed this in its report on Wednesday when it stated that the rise in food inflation in August was driven by increase in the prices of bread and cereals, milk, cheese and egg, oils and fats, potatoes, yam and other tuber, meat and coffee, tea and cocoa.

 

The report noted that on a month-on-month basis, the food sub-index increased by 1.06 per cent in August, up by 0.20 per cent points from 0.86 per cent recorded in July.

 

“The average annual rate of change of the food sub-index for the 12-month period ending August 2021 over the previous 12-month average was 20.50 per cent, 0.34 per cent points from the average annual rate of change recorded in July 2021 (20.16) per cent,” it added.

 

A cursory look at the food inflation rate between January and August shows fluctuation in trends.

 

In January, for instance, food inflation rose to 20.57 per cent, compared to 19.56 per cent in December 2020 and was as high as 22.95 per cent in March.

 

However, in April, food inflation stood at 22.72 per cent and continued to rise at a decreasing level until August.

 

Further analysis of the latest CPI report revealed that on YoY basis, food inflation was highest in certain states such as Kogi (28.76 per cent), Oyo (23.69 per cent) and Gombe (22.37 per cent), while River (17.69 per cent), Edo (17.26 per cent) and Bauchi (17.24 per cent) recorded the slowest rise.

 

“On month on month basis however, August 2021 food inflation was highest in Ekiti (2.70 per cent), Abuja (2.62 per cent) and Akwa Ibom (2.50 per cent), while Lagos (0.04 per cent) and Edo (0.08 per cent) recorded the slowest rise with Kaduna recording price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate),” the report stated.

 

The Consumer Price Index which measures inflation rate fell to 17.01 per cent in August.

 

According to the latest CPI report, this rate is 0.37 per cent points lower than the 17.38 per cent recorded in July this year.

 

This is the fifth consecutive month that the country’s inflation rate will be trending downward since March this year.

 

Inflation dropped from 18.17 per cent in March to 18.12 per cent in April before dropping further to 17.93 per cent, 17.75 per cent and 17.38 per cent in the months of May, June and July respectively.

 

The NBS said that on a month-on-month basis, the headline index increased by 1.02 per cent in August 2021, adding that this is 0.09 per cent rate higher than the 0.93 per cent recorded in July 2021.

 

The report stated, “The consumer price index, which measures inflation increased by 17.01 per cent (year-on-year) in August 2021.

 

 

 

 

 

 

 

 

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