– As Inflation hits 14.89% in November ’20
Indications that Nigerians are still plagued with the biting effects of the Covid-19 pandemics and the 15-month land border have emerged, as inflation rate surged to 14.89 per cent for the month of November, 2020.
This represents the highest inflation rate recorded in 34 months since January 2018, when the rate stood at 15.13 per cent, according to report by the National Bureau of Statistics (NBS).
Nigeria’s inflation rate spiked by 14.89 per cent (year-on-year) in November 2020, which is 0.66 per cent points higher than the rate recorded in October 2020 (14.23 per cent).
On a month-on-month basis, the Headline index increased by 1.6 per cent in November 2020, representing 0.06 per cent points higher than the rate recorded in October 2020 (1.54 per cent).
At the centre of the surging trend is food inflation. The report showed that food index rose sharply by 18.3 per cent in November 2020 compared to 17.38 per cent in October 2020, representing 0.92 per cent points higher than the preceding month.
The statistics bureau stated that the rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, yam and other tubers, Meat, Fish, Fruits, Vegetables, and Oils and fats.
“The ‘All items less farm produce’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 11.05 per cent in November 2020, declined by 0.09 per cent when compared with 11.14 per cent recorded in October 2020.
“On a month-on-month basis, the core sub-index increased by 0.71 per cent in November 2020 representing a sharp 0.54 per cent point decline when compared with 1.25 per cent recorded in October 2020,” the report stated.
The highest increases were recorded in prices of Passenger transport by air, Medical services, Hospital services, Repair of furniture, Passenger transport by road, Maintenance and repair of personal transport equipment, vehicle spare parts, Hairdressing salons and personal grooming establishments, Pharmaceutical products, Paramedical services and Motor cars.
In the month under review, Kogi State recorded the highest inflation rate at 19.87 per cent, closely followed by Bauchi State with an inflation rate of 19.67 per cent. Also, Zamfara State recorded an inflation rate of 17.3 per cent while Sokoto and Yobe States recorded 16.97 per cent and 16.44 per cent respectively.
In terms of food index, Kogi State also recorded the highest rise in inflation rate, followed by Zamfara (20.6 per cent), Sokoto (20.6 per cent) while Ebonyi and Plateau State recorded food inflation of 20.2 per cent and 19.7 per cent respectively.
Analysts at Nairametrics explained that Nigerians are still facing the hardship caused by the effect of the Covid-19 lockdown and the sustained land border closure, which has caused the cost of major food items and essential services to skyrocket nationwide.
Most non-agricultural items that recorded significant increases in the periods were mostly transport services, medical services, and pharmaceutical products.
The analysts maintained that “as many Nigerians are drawn to be more aware of their health status due to the covid outbreak, increased demand for medical services and health-related products has caused a significant hike in prices.”