The National Bureau of Statistics released its June 2019 Consumer Price Index showing inflation rate rose 11.22% year on year, the slowest rise in about 11 months. The report noted that the rise in inflation was mostly due to an increase in prices of Bread and cereals, Meat, Oils and fats, Potatoes, Yam and other tubers, Fish, Vegetables, and fruits.
The Nigerian Economy has reported a double-digit inflation rate for 41 months straight, the longest stretch in over 10 years. The last time Nigeria recorded single-digit inflation rate was in January 2016 and it was 9.62%. While the economy as a whole continues to grapple with double-digit inflation rates, some states are recording single-digit inflation.
Low inflation rate states: The following states reportedly recorded single-digit inflation rate for the month of June 2019.
- Bayelsa State recorded the lowest inflation rate at 8.6% for the month of June 2019.
- This was followed by Kwara State with 9% inflation rate. Delta, Cross Rivers, and Kogi State recorded 9.5%, 9.8%, and 9.9% inflation rates respectively.
- Kwara was 8.5% last month and has been single digits for some months.
- All other states recorded double-digit inflation rates with Bauchi the highest at 15.4%.
- All the states recorded double-digit food inflation rate except Kogi State at 9.8%. Kogi State was the only state that recorded single-digit all items and food inflation rate respectively.
What this means: To be fair, the National Bureau of Statistics put up a disclaimer claiming that Indices may not be used for inter-state price comparison because market baskets differ. This suggests, comparing states with another is not apples for apples as Bayelsa State might have items included in its basket that are relatively cheaper than the basket of other states. Nevertheless, the data is worth nothing for the following reasons;
- The benefits of single-digit inflation rate are that prices of goods and services that matter to residents of the states rise slower than anywhere else in the country.
- For residents, their purchasing power is better protected than anywhere else in the country.
- It’s also ironic to note that Bayelsa State has one of the highest unemployment rates in the country at 23.3%. Combined with Underemployment rate, the state post 40.1% in general unemployment rate.
- If there is anything tangible to take away, it’s perhaps the fact that single-digit inflation rate exists in this country, despite the dire economic situation.