Nigeria’s inflation hits 14.89% as food prices reach 34-month high

This represents the highest inflation rate recorded since January 2018, when the rate stood at 15.13%.

Excerpts from the report showed that higher food prices contributed to the spike as the food index rose sharply by 18.3% in November 2020 compared to 17.38% in October 2020.

Likewise, the prices of Bread and cereals, Potatoes, yam and other tubers, Meat, Fish, Fruits, Vegetables, and Oils and fats grew at a faster pace of 0.08% points from 1.96% recorded in October 2020.

Core inflation, which excludes volatile components like food and fuel, stood at 11.05% in November 2020, declining by 0.09% when compared with 11.14% recorded in October; suggesting a lack of demand and weak economic activity.

“On a month-on-month basis, the core sub-index increased by 0.71 per cent in November 2020, representing a sharp 0.54% point decline when compared with 1.25% recorded in October 2020.”

“The highest increases were recorded in prices of Passenger transport by air, Medical services, Hospital services, Repair of furniture, Passenger transport by road, Maintenance and repair of personal transport equipment, vehicle spare parts, Hairdressing salons and personal grooming establishments, Pharmaceutical products, Paramedical services and Motor cars,” NBS noted in the report.

In the judgment of financial analysts, November was cited as the first month in which the impact of the increase in the price of PMS and a partial rise in electricity tariffs will feed into the inflation basket.

Source: NBS