Concerns mount as inflation rate jumps to 13.71 per cent

There are fears that the Nigerians’ living conditions may not fare better in the coming months following the continued rise in inflation rate. The inflation rate rose to 13.71 per cent in September, which is 0.49 per cent higher than 13.22 per cent recorded in August 2020.

The latest inflation figure was released on Thursday by the National Bureau of Statistics in its Consumer Price Index report.

The rate has been on a steady rise this year. For instance, the inflation rate stood at 12.82 per cent in July, compared to 12.56 per cent in June 2020.

The September figure is noted as the highest level since March 2018 when it hit a record high of 13.34 per cent.

According to the NBS new report, “The consumer price index which measures inflation increased by 13.71 per cent (year-on-year) in September 2020. This is 0.49 per cent points higher than the rate recorded in August 2020 (13.22) per cent.”

Details of the report showed that increases were recorded in all COICOP divisions that yielded the headline index.

On a month-on-month basis, the headline index increased by 1.48 per cent in September 2020, which is 0.14 higher than the August 2020 (1.34) figure.

The percentage change in the average composite CPI for the 12-month period, ending September 2020 over the average of the CPI for the previous 12-month period is 12.44 per cent, showing 0.21 percentage point from 12.23 in August 2020.

The urban inflation rate increased by 14.31 per cent (year-on-year) from 13.83 per cent recorded in August 2020, while the rural inflation rate increased by 13.14 per cent from 12.65 in August 2020.

The urban index rose by 1.56 per cent in September 2020, on a month-on-month basis. This was up by 0.14 from 1.42 per cent in August 2020.

The rural index also rose by 1.40 per cent in September 2020, up by 0.13 from 1.27 in August 2020.

The corresponding 12-month year-on-year average percentage change for the urban index is 13.07 per cent in September 2020.

This is higher than the 12.85 per cent in August 2020, while the corresponding rural inflation rate in September 2020 is 11.86 per cent compared to the 11.66 per cent of August 2020.

The Lagos Chamber of Commerce and Industry has expressed worry at the continued uptrend in headline inflation and urged the government to address issues around the disruption of agriculture value chain including insecurity problem.

Its President, Mrs Toki Mabogunje, said at a recent press briefing on the state of the economy that intense inflationary pressures would exert negative impact on households purchasing power, investment, production cost and business operations.

She noted the currency devaluation and the increase in value added tax rate as likely factors responsible for the higher inflation trend early this year, adding that the COVID-19 pandemic that paralysed the economy compounded the situation in the later months.

Mabogunje urged “the government to stem rising consumer prices through measures aimed at bridging supply gaps and reducing transportation costs. Similarly, there is a need to address the security concerns in the country, especially in the major food-producing areas.”