Nigeria’s inflation rate, rose to 23 months high in April 2020 by 0.08 percent to 12.34 percent year-on-year (YonY) from the 12.26 percent recorded in March 2020. According to figures released by the National Bureau of Statistics (NBS)
On month-on-month basis, the Headline index increased by 1.02 percent in April 2020, representing 0.18 percent rate higher than the 0.84 percent rate recorded in the preceding month
The percentage change in the average composite CPI for the twelve months period ending April 2020 over the average of the CPI for the previous twelve months period was 11.71 percent, showing 0.09 percent point rise from 11.62 percent recorded in March 2020.
The NBS report shows that Urban inflation rate increased by 13.01 percent in the month of April from 12.93 percent recorded in March. The rural inflation rate also increased by 11.73 percent in April, up from 11.64 percent in March.
The report further shows that the composite food index rose by 15.03 percent in April 2020 compared to 14.98 percent in March 2020.
According to NBS: “This rise in the food index was caused by increases in prices of Potatoes, Yam and other tubers, Bread and cereals, Fish, Oils and fats, Meat, Fruits and Vegetables.”
On month-on-month basis, the food sub-index increased by 1.18 percent in April, up by 0.24 percent points from 0.94 percent recorded in March. The average annual rate of change of the
Food sub-index for the 12-month period ended April over the previous 12-month average was 14.22 percent, 0.11 percent points higher than the average annual rate of change recorded in March 2020 (14.11) percent.
For Core Inflation, which excludes the prices of volatile agricultural produce it stood at 9.98 percent in April, up by 0.25 percent when compared with 9.73 percent recorded in March.
On month-on-month basis, the core sub-index increased by 0.93 percent in the month under review. This was up by 0.13 percent when compared with 0.80 percent recorded in March.
The average 12-month annual rate of change of the index was 9.17 percent for the twelve-month period ending April, representing 0.06 percent points higher than 9.11 percent recorded in the preceding month.
Meanwhile the current Covid-19 lockdown, which includes restrictions on inter-state movement in the country have been fingered to be responsible for the continues rise in inflation rate.
Late in 2019, before the Covid-19 pandemic, President Muhammadu Buhari instituted a border closure across Nigeria to curb the incessant illegal importation of essential commodities and food item into the country.
While that action was seen to have achieved its aim of assisting local producers and farmers, it also resulted in temporary increases in the prices of essential commodities but the current global pandemic have also helped to push the inflation rates even further up.