Nigeria’s Inflation Slows for Sixth Month to 16.63% in September

By Adedapo Adesanya

For the sixth straight month, Nigeria’s inflation slowed in September 2021 to 16.63 per cent (year-on-year), according to data released by the National Bureau of Statistics (NBS) on Friday.

In its latest Consumer Price Index (CPI) report for the ninth month of the year, the stats office said the prices of goods and services increased by 16.63 per cent, 0.38 per cent lower than the 17.01 per cent recorded in August 2021.

The NBS also said the Composite Food Index rose by 19.57 per cent in September 2021 compared to 20.30 per cent in August 2021.

This rise in the food index was caused by increases in prices of oils and fats, bread and cereals, food product, fish, coffee, tea and cocoa, potatoes, yam and other tuber and milk, cheese and egg.

On a month-on-month basis, the food sub-index increased by 1.26 per cent in September 2021, up by 0.20 per cent points from 1.06 per cent recorded in August 2021.

The average annual rate of change of the food sub-index for the 12-month period ending September 2021 over the previous 12-month average was 20.71 per cent, 0.21 per cent higher than the average annual rate of change recorded in August 2021, which was 20.50 per cent

According to the report, increases were recorded in all Classification of Individual Consumption According to Purpose (COICOP) divisions that yielded the headline index.

It stated that on a month-on-month basis, the headline index increased by 1.15 per cent in September 2021, 0.13 per cent higher than the rate recorded in August 2021 (1.02 per cent).

Also in the report, the NBS disclosed that the urban inflation rate increased by 17.19 per cent (year-on-year) in September 2021 from 17.59 per cent recorded in August 2021, while the rural inflation rate increased by 16.08 per cent in September 2021 from 16.45 per cent in August 2021.

On a month-on-month basis, the urban index rose by 1.21 per cent in September 2021, higher by 0.15 than the 1.06 per cent achieved a month earlier, while the rural index also rose by 1.10 per cent in September 2021 in contrast to 0.99 per cent reported in August, indicating an increase by 0.11 per cent.