Nigeria Inflation for September 2022

The inflation rate in Nigeria witnessed yet another upsurge in the month of September 2022. The year-on-year headline inflation rate rose to 20.77 per cent, this surpassed the 20.52 and 16.63 per cent recorded in August 2022 and September 2021 by 0.25 and 4.14 per cent respectively, indicating that the general price level was higher by 0.25 and 4.14 per cent than what obtained in the months of August 2022 and September 2021 respectively. On the month-on-month basis, the headline inflation declined from 1.77 per cent recorded in August, to 1.36 per cent in September 2022.

Nigeria Inflation for September 2022

 

The inflation rate in Nigeria witnessed yet another upsurge in the month of September 2022. The year-on-year headline inflation rate rose to 20.77 per cent, this surpassed the 20.52 and 16.63 per cent recorded in August 2022 and September 2021 by 0.25 and 4.14 per cent respectively, indicating that the general price level was higher by 0.25 and 4.14 per cent than what obtained in the months of August 2022 and September 2021 respectively. On the month-on-month basis, the headline inflation declined from 1.77 per cent recorded in August, to 1.36 per cent in September 2022. This shows a drop in the general price level of 0.41 per cent in the month of September. The decline in the monthly inflation rate was a function of the decrease in food prices due to harvest season which reduced the scarcity of food items witnessed in the previous months. On the other hand, the increase in the yearly headline inflation rate is attributed to the disruption in the supply of food products, increase in the cost of importation arising from the persistent currency depreciation and the general increase in the cost of production.

 

In both the urban and the rural areas, there were increases in the headline inflation rate in the month of September. The urban centre recorded a 21.25 percent year-on-year inflation rate, while the rural area was 20.32 per cent. The above figures show that the general price level increased by 4.06 per cent from the 17.19 per cent recorded in the same month in 2021 in the urban areas, while the rural areas presented an appreciation of 4.24 per cent in the general price level from the 16.08 per cent inflation rate recorded in the same month in 2021. On a month-on-month basis, the urban centre headline inflation declined by 0.03 percent from 1.79 per cent recorded in the month of August to 1.46 per cent in the month under review. Similarly, the rural areas also witnessed a decline in the month-on-month inflation rate from 1.75 per cent recorded in August to 1.27 per cent in September 2022. This shows that the general price level declined by 0.48 per cent.

 

The decline in the month-on-month inflation as stated above is attributed to the decline in food inflation given the harvest season. According to the National Bureau of Statistics (NBS), the reduction in prices of some food items like tubers, garri, local rice and Vegetables, etc., caused the food inflation to drop from 1.98 per cent in August to 1.43 per cent, i.e., a 0.54 per cent fall in the monthly food inflation in the month of September 2022. This was not the case with the year-on-year food inflation which rose from 19.57 per cent in September 2021 to 23.34 per cent in the month under review. The 3.77 per cent rise in the headline inflation within the period is attributed to increases in the prices of bread and cereals, food products, potatoes, yam and other tuber, fish, meat, oil and fat.

 

The core inflation rate, which excludes the prices of volatile agricultural produce, also recorded increases. On a year-on-year basis, the increases in the prices of Gas, Liquid fuel, Solid fuel, Passenger transport by road, Passenger transport by Air, fuel and lubricants for personal transport equipment, Cleaning, Repair and Hire of clothing caused a significant increase in Inflation rate from 17.20 per cent in August 2021 to 17.60 per cent in the month of September 2022. This figure is also 3.86 per cent from 13.74 per cent recorded in the same month of September in 2021. On a month-on-month basis, the core inflation rate was 1.59 per cent, the same rate it was in August 2022. This shows that the prices of items under the core inflation remained the same as in August.

 

However, despite the insignificant increase in the core inflation rate in the month under review, the average price level has continued to soar leading to increases in general inflation rate. This has been the case for the past months. The rate of inflation in Nigeria has assumed an alarming dimension, and is eroding the purchasing power of consumers, thereby affecting the sales and revenue of manufacturers. Unfortunately, this may not abate in the coming months. With the campaigns for the generation elections going on, the amount of money that would be pushed out by politicians escalate the inflations and cause more hardships. It is important that while manufacturers rethink the sources of their raw materials locally and resize their products to packages that are affordable to consumers for affordability, consumers should prioritize their needs and remove frivolities.