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Economy | Nigeria Economy

Headline Inflation Increases by 15.75% YoY In December 2020, 0.86% Higher Than November 2020 Rate

Jan 15, 2021   •   by   •   Source: Proshare   •   eye-icon 2776 views

Friday, January15, 2021 11:00 AM / by NBS/ Header Image Credit: NBS


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All Item Index

The consumer price index, (CPI) which measures inflation increased by15.75 percent (year-on-year) in December 2020. This is 0.86 percent pointshigher than the rate recorded in November 2020 (14.89) percent.

 

Increases were recorded in all COICOP divisions that yielded theHeadline index.

 

On month-on-month basis, the Headline index increased by 1.61 percent inDecember 2020. This 0.01 percent rate higher than the rate recorded in November2020 (1.60 percent).

 

The percentage change in the average composite CPI for the twelve monthsperiod ending December 2020 over the average of the CPI for the previous twelvemonths period was 13.25 percent, representing a 0.33 percent point increaseover 12.92 percent recorded in November 2020.

 

The urban inflation rate increased by 16.33 percent (year-on-year) inDecember 2020 from 15.47 percent recorded in November 2020, while the ruralinflation rate increased by 15.20 percent in December 2020 from 14.33 percentin November 2020.

 

On a month-on-month basis, the urban index rose by 1.65 percent inDecember 2020, same as the rate recorded in November 2020, while the ruralindex also rose by 1.58 percent in December 2020, up by 0.02 percent above therate that was recorded in November 2020 (1.56 percent).

 

The corresponding twelve-month year-on-year average percentage changefor the urban index is 13.86 percent in December 2020. This is higher than13.55 percent reported in November 2020, while the corresponding ruralinflation rate in December 2020 was 12.67 percent compared to 12.35 percentrecorded in November 2020.


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Food Index

The composite food index rose by 19.56 percent in December 2020 comparedto 18.30 percent in November 2020.

 

This rise in the food index was caused by increases in prices of Breadand cereals, Potatoes, Yam and other tubers, Meat, Fruits, Vegetable, Fish andOils and fats.

 

On month-on-month basis, the food sub-index increased by 2.05 percent inDecember 2020, up by 0.01 percent points from 2.04 percent recorded in November2020.  

 

The average annual rate of change of the Food sub-index for thetwelve-month period ending December 2020 over the previous twelve-month averagewas 16.17 percent, 0.42  percent points from the average annual rate ofchange recorded in November 2020 (15.75) percent.


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All Items Less Farm Produce

The "All items less farm produce" or Core inflation, which excludesthe prices of volatile agricultural produce stood at 11.37 percent in December2020, up by 0.32 percent when compared with 11.05 percent recorded in November2020.



On month-on-month basis, the core sub-index increased by 1.10 percent inDecember 2020. This was up by 0.39 percent when compared with 0.71 percentrecorded in November 2020.



The highest increases were recorded in prices of Passenger transport byair, Medical services, Hospital services, Shoes and other footwear, Passengertransport by road, Miscellaneous services relating to the dwelling,Hairdressing salons and personal grooming establishments, Repair of furniture,Vehicle spare parts, Pharmaceutical products, Motor cars, Maintenance andrepair of personal transport equipment, Paramedical services, Motor cycle,Dental services and Bicycles.



The average 12-month annual rate of change of the index was 10.31percent for the twelve-month period ending December 2020; this is 0.17 percentpoints higher than 10.14 percent recorded in November 2020.



State Profiles

In analysing price movements under this section, note that the CPI isweighted by consumption expenditure patterns which differ across states.Accordingly, the weight assigned to a particular food or non-food item maydiffer from state to state making interstate comparisons of consumption basketinadvisable and potentially misleading.  



All Items Inflation

In December 2020, all items inflation on year on year basis was highestin Bauchi (19.85%), Edo (18.15%) and Kogi (18.40%), while Lagos (14.05%), Kwara(13.91%) and Abia (13.30%) recorded the slowest rise in headline Year on Yearinflation.



On month on month basis however, December 2020 all items inflation washighest in Nasarawa (2.30%), Gombe (2.20%) and Akwa Ibom (2.16%), while Ekiti(0.87%), River (0.67%) and Ebonyi (0.61%) recorded the slowest rise in headlinemonth on month inflation.



Food Inflation

In December 2020, food inflation on a year on year basis was highest inEdo (24.14%), Kogi (23.14%) and Sokoto (22.24%), while Bauchi (16.53%),Abia  (16.04%) and Nasarawa (15.71%) recorded the slowest rise.



On month on month basis however, December 2020 food inflation washighest in Edo (3.68%), Benin (3.48%) and Gombe (3.00%), while River (0.93%),Osun (0.59%) and Ekiti (0.24%)  recorded the slowest rise.


Click Here to DownloadDecember 2020 CPI PDF Report


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Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

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