News • Created October 16, 2021 06:47

Inflation drops to 16.63% in September

Inflation rate has dropped to 16.63 per cent for the month of September from the 17.01 per cent recorded in August, showing a marginal

Inflation drops to 16.63% in September

Inflation rate has dropped to 16.63 per cent for the month of September from the 17.01 per cent recorded in August, showing a marginal drop of 0.38 per cent.

According to the Consumer Price Index (CPI), which measures inflation rates released by the National Bureau of Statistics (NBS), the 16.63 per cent in September also increased in all divisions that yielded the Headline Index.

The report noted that the Headline Index increased by 1.15 per cent in September, which is 0.13 per cent higher than 1.02 per cent recorded in August.

The report disclosed that urban inflation rate dropped to 17.19 per cent from 17.59 per cent recorded in August, with rural inflation following the same pattern of 16.08 per cent in September from 16.45 per cent in the preceding month.

Meanwhile, food index stood at 19.57 per cent compared to 20.30 per cent in August 2021 blaming the rise in the food index on increase 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.”

The report said highest increases were recorded in prices of gas, household textile, garments, cars, game of chance, major household appliances whether electric or not, passenger transport by air, hospital services, other services in respect personal transport equipment, wine, clothing materials, other articles of clothing and clothing accessories.”

It added that all items inflation on a yearly basis was highest in Kogi (20.82%), Gombe (19.09%) and Oyo (19.07%), while Yobe (14.96%), Edo (14.85%) and Kwara (13.70%) recorded the slowest rise in headline inflation.

However, on month-on-month basis, Ebonyi (3.42%), Kano (2.41%) and Rivers (1.88%) recorded the slowest rise while despite banditry in Zamfara and Benue, the two states and Cross River recorded price deflation of -0.32, -0.45 and -1.5 per cents, respectively, which is a general decrease in the prices of goods and services or a negative inflation rate.

Food inflation on a year-on-year basis was highest in Kogi (26.63%), Oyo (22.40%) and Gombe (22.16%), while Bauchi (16.35%), Yobe (16.33%) and River (15.97%) recorded the slowest.

On a month-on-month basis, however, food inflation was highest in Kaduna (2.22%), Kano (2.17%) and Anambra (2.15%), while Benue (0.23%) and Kebbi (0.09%) recorded the slowest rise with Zamfara recording price deflation or negative inflation (general decrease in the general price level of food).

Daily Trust Saturday reports that in August, a 100 kg bag of maize was sold at N23,000 in Dawanu international grain market in Kano, same size of maize was sold at N24,500 in Bwari main market in the Federal Capital Territory.

As maize harvest sets in September, the price of the grain reduced to between N21,000  and N22,000 per 100kg bag.

Similarly, beans was sold at N45,000 per 100kg bag in August in Kano, Katsina and Idah market in Kaduna State. The same size of the produce reduced to N42,000 in September in Kano, N41,500 in Katsina and N43,000 in Idah market.

Similarly, 100 kg bag of rice was sold at N54,000 in Kano in August but reduced to N52,000 in September as some farmers began wet season harvest of rice.

Same applies to millet, which was sold at N25,000 per 100kg bag in August in Katsina and Kano but reduced to between N24,500 and N24,000 in September.

Prices of Sorghum, however, went from N 24,000 per 100kg bag in August to N27,000 per 100kg bag in September in Katsina, Kano and some parts of Kaduna State. This is because the harvest of Sorghum is due in late November and December in most parts of the growing areas.

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