Food prices dropped in Akwa Ibom, price of gas increased… highlights of Nigeria’s November inflation report

The consumer price index (CPI), which measures the rate of change in prices of goods and services, declined marginally in November 2021 to 15.40 percent from 15.99 percent recorded in October.

This, according to NBS, represented the lowest inflation rate recorded since November 2020, when the CPI rose by 14.89 percent.

On a month-on-month basis, the headline index increased by 1.08 percent in November 2021 — about 0.10 percent rate higher than the rate recorded in October 2021 (0.98 percent).

This implies that prices of items continued to rise in November 2021 — but at a slower pace than the previous month.

Here are some key highlights from the inflation figures:

INCREASES RECORDED IN PRICE OF EGGS, FISH, YAM

According to NBS, the composite food index rose by 17.21 percent in November 2021 compared to 18.30 percent in November 2020

This rise in the food index was caused by increases in prices of bread and cereals, fish, food products, including yam and other tubers, oil and fats, milk, cheese and eggs, and coffee, tea, and cocoa.

On a month-on-month basis, the food sub-index increased by 1.07 percent in November 2021, up by 0.16 percent points from 0.91 percent recorded in October 2021.

“The average annual rate of change of the Food sub-index for the twelve-month period ending November 2021 over the previous twelve-month average was 20.62 percent, 0.13 percent points lower from the average annual rate of change recorded in October 2021 (20.75 percent).” the report stated.

AKWA IBOM RECORDED DEFLATION

On a month-on-month basis, food inflation was highest in Enugu (2.59 percent), Imo (2.31 percent), and Ekiti (2.01 percent), while Jigawa (0.27 percent), Ogun (0.36 perecent) recorded the slowest rise in inflation.

According to the report, Akwa Ibom recorded price deflation or negative inflation (decrease in the general price level of food or a negative food inflation rate). Deflation occurs when the inflation rate falls below 0 percent.

In the last one year, NBS said food inflation was highest in Gombe (21.83 percent), Kogi (21.09 percent), and Nasarawa (20.48 percent), while Edo (14.12 percent), Rivers (14.31 percent), and Osun (14.45 percent) recorded the slowest rise.

PRICES OF COOKING GAS, HOUSEHOLD APPLIANCES INCREASED

The “All items less farm produce’’ or core inflation, which excludes the prices of volatile agricultural produce, stood at 13.85 percent in November 2021, up by 0.61 percent, when compared with 11.05 percent recorded in November 2020.

On a month-on-month basis, NBS said the core sub-index increased by 1.26 percent in November 2021. This was down by 0.46 percent when compared with 0.80 percent recorded in October 2021.

According to the report, the highest increases were recorded in the prices of cooking gas, liquid fuel, other services.

“The average 12-month annual rate of change of the index was 12.96 percent for the twelve-month period ending November 2021; this is 0.23 percent points higher than 12.73 percent recorded in October 2021,” it added.