Northern States Push Inflation To 12.82% As Foodstuff Prices Rise Across Nigeria

Nigeria's inflation rate rose by 12.82 percent (year-on-year) in July 2020, the Nigerian Bureau of Statistics (NBS) has disclosed, but on a month-on-month basis, inflation increased by 1.25 percent in July 2020 - with Northern states recording the highest hike in the inflation rate.

The year-on-year increase represents 0.26 percent points higher than the rate recorded in June 2020 (12.56) percent, while on month-on-month, the report seen by AllNews stated that the inflation rate grew 0.04 percent higher than the 1.21 percent rate recorded in June 2020.

According to the report - The urban inflation rate increased by 13.40 percent (year-on-year) in July 2020 from 13.18 percent recorded in June 2020, while the rural inflation rate increased by 12.28 percent in July 2020 from 11.99 percent in June 2020.

- Meanwhile, On a month-on-month basis, the urban index rose by 1.27 percent in July 2020, up by 0.04 from 1.23 percent recorded in June 2020, while the rural index also rose by 1.23 percent in July 2020, up by 0.04 from the rate recorded in June 2020 (1.19) percent, the report disclosed.

[READ ALSO: Stock Market Today: MTN Nigeria Makes Gainers List As Dangote Cement Stock Price Slumps]

- The corresponding twelve-month year-on-year average percentage change for the urban index was 12.66 percent in July 2020. This is higher than 12.50 percent reported in June 2020, while the corresponding rural inflation rate in July 2020 is 11.49 percent compared to 11.36 percent recorded in June 2020.

Food That Pushed Inflation Rate Up?

- The composite food index rose by 15.48 percent in July 2020 compared to 15.18 percent in June 2020. AllNews gathered from NBS that the rise in prices of Bread and cereals, Potatoes, yam, and other tubers, Meat, Fruits, Oils and fats, and Fish, pushed the food index inflation high.

- The average annual rate of change of the Food sub-index for the twelve-month period ending July 2020 over the previous twelve-month average was 14.63 percent, 0.17 percent points from the average annual rate of change recorded in June 2020 (14.46) percent.

- Meanwhile, the average annual rate of change of the Food sub-index for the twelve-month period ending July 2020 over the previous twelve-month average was 14.63 percent, 0.17 percent points from the average annual rate of change recorded in June 2020 (14.46) percent.

[READ ALSO: Flour Mills React As Revenue, Profit Survives COVID-19 Assault, Lockdown Impact]

Non-farm Produce Inflation

- The highest increases were recorded in prices of Medical services, Passenger transport by air, Pharmaceutical products, Hospital services, Passenger transport by road, Maintenance and repair of personal transport equipment, Paramedical services, and Vehicle spare parts.

- The ''All items less farm produce'' or Core inflation, which excludes the prices of volatile agricultural produce stood at 10.10 percent in July 2020, down by 0.03 percent when compared with 10.13 percent recorded in June 2020. On a month-on-month basis, the core sub-index increased by 0.75 percent in July 2020. This was down by 0.11 percent when compared with 0.86 percent recorded in June 2020.

States And How They Rank By Inflation

All Items Inflation: In July 2020, all items inflation on year on year basis was highest in Bauchi (16.10%), Kogi (15.90%) and Sokoto and Plateau (15.20%), while Lagos (10.70%), Adamawa (10.60%), and Kwara (10.50%) recorded the slowest rise in headline Year on Year inflation.

On month on month basis, however, July 2020 all items inflation was highest in Kogi (2.85%), Zamfara (2.44%), and Yobe (2.35%), while Ondo (0.67%), Adamawa (0.63%), and Ogun and Imo (0.62%) recorded the slowest rise in headline month on month inflation.

Food Inflation: In July 2020, food inflation on a year on year basis was highest in Kogi (20.09%), Sokoto (19.28%), and Plateau (18.05%), while Adamawa (13.37%), Abia  (13.33%), and Lagos (13.13%) recorded the slowest rise.

On month on month basis, however, July 2020 food inflation was highest in Zamfara (3.40%), Kogi (3.32%), and Yobe (3.00%), while Niger and Ogun (0.44%), Lagos (0.41%) with Adamawa recording price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).

Note: To read the NBS report, click this link.