Nigeria’s inflation rate dropped further in the month of November 2021 to 15.4% from 15.99% recorded in the previous month. This is according to the recently released inflation report by the National Bureau of Statistics (NBS).
According to the report, the latest figures represent the lowest recorded since November 2020, when the CPI rose by 14.89%. Meanwhile, on a month-on-month basis, the Headline index increased by 1.08% in November 2021, this is 0.10% rate higher than the rate recorded in October 2021 (0.98%).
The urban inflation rate increased by 15.92% (year-on-year) in November 2021 from 15.47% recorded in November 2020, while the rural inflation rate increased by 14.89% in November 2021 from 14.33% in November 2020.
Food inflation dropped significantly to 17.21% in November 2021 from 18.34% recorded in October 2021. Food inflation dropped to its lowest level in 14 months. On a month-on-month basis, the food sub-index increased by 1.07% in November 2021, up by 0.16% points from 0.91% recorded in October 2021.
It is worth noting that, the rise in the food index was caused by increases in prices of bread and cereals, fish, food product, potatoes, yam and other tuber, oil and fats, milk, cheese and eggs and coffee, tea, and cocoa.
The “All items less farm produce” also known as core inflation, which excludes the prices of volatile agricultural produce stood at 13.85% in the review month, rising from 13.24% recorded in the previous month.
The highest increases were recorded in prices of gas, Liquid fuel, other services, garments, Vehicle spare parts, passenger transport by road, non-durable household goods, Jewellery clocks and watches, passenger transport by air, pharmaceutical products, appliances, articles and products for personal care, cleaning, repair and hire of clothing and fuels and lubricants for personal transport equipments.
In November 2021, all items inflation on year-on-year basis was highest in Gombe (18.54%), Jigawa (17.54%) and Nasarawa (17.43%), while Kwara (11.73%), River (13.36%) and Edo (13.50%) recorded the slowest rise in headline Year on Year inflation.
In terms of food inflation, Gombe State also recorded the highest year-on-year increase at 21.83% followed by Kogi (21.09%), and Nasarawa State (20.48%), while Edo (14.12%), Rivers (14.31%) and Osun (14.45%) recorded the slowest rise in year-on-year food inflation
What this means
Nigeria’s inflation rate recorded its 8th consecutive moderation in November 2021, falling to its lowest level in 12 months. However, a 15.4% headline inflation rate implies that the purchasing power of Nigerians continues to weaken as a result of increase in the prices of goods and services.