Inflation Hits 15.75%, Highest Level In Three Years

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inflation rate Nigeria closed 2020 on a hitting 15.75 percent December, its highest level three years. This is according statistics released on by National Bureau Statistics.

This an increase by 0.86 percent from 14.89 percent recorded November last year.

“The consumer price index, (CPI) which inflation increased by 15.75 percent (year-on-year) December 2020. This is 0.86 percent points higher than the rate recorded November 2020 (14.89) percent,” the revealed its statistics.

The spike beats the expectations analysts at the financial derivatives company who had projected an increase 15.4 percent, largely driven by forex rationing, output and productivity constraints, higher logistics and distribution costs.

urban inflation also rose by 16.33 percent year on year

Data released by the also shows an increase in prices pushed the index higher by 19.56 percent, while core inflation inched up by 0.32 percent 11.37 percent in December.

“The composite index rose by 19.56 percent in December 2020 compared to 18.30 percent in November 2020.

“The average annual rate change the sub-index for the twelve-month period ending December 2020 over the previous twelve-month average 16.17 percent, 0.42 percent points from the average annual rate of change recorded in November 2020 (15.75) percent,” the read in part.

This rise in the food index according to the NBS caused by increases in prices of Bread and cereals, Potatoes, Yam and tubers, Meat, Fruits, Vegetable, Fish and Oils, and fats.

Similarly, urban inflation also rose by 16.33 percent year on year, while the rural inflation rate stood at 15.20 percent in December.

In December 2020, all items inflation on year to year basis highest in Bauchi (19.85%), Edo (18.15%), and Kogi (18.40%), while (14.05%), Kwara (13.91%), and Abia (13.30%) recorded the slowest rise in headline year on year inflation.