The National Bureau of Statistics (NBS), says the inflation rate increased in February by 0.86 per cent to 17.33 per cent from 16.47 per cent recorded in January.
The NBS said this in its Consumer Price Index (CPI) report for February 2021 released on Tuesday in Abuja.
The bureau added that CPI increased by 17.33 per cent (year-on-year) in February.
This represents the highest inflation rate recorded in four years.
The latest inflation report published by NBS revealed that Nigeria recorded an inflation rate this high was in February 2017, when it declined to 17.78per cent from 18.72 per cent.
The report said increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the headline index.
“On month-on-month basis, the headline index increased by 1.54 per cent in February, this is 0.05 per cent rate higher than the rate recorded in January (1.49 per cent),” said the report.
The NBS said the percentage change in the average composite CPI for the 12 months period ending February over the average of the CPI for the previous 12 months period was 14.05 per cent.
This, it said, showed 0.43 per cent point from 13.62 per cent recorded in January.
According to the report, the urban inflation rate increased by 17.92 per cent (year-on-year) in February from 17.03 per cent recorded in January.
It added that the rural inflation rate increased by 16.77 per cent in February from 15.92 per cent in January.
It said on a month-on-month basis, the urban index rose by 1.58 per cent, up by 0.06 rate recorded in, while the rural index also rose by 1.50 per cent in February, up by 0.04 per cent that was recorded in January (1.46) per cent.
“The corresponding 12-month year-on-year average percentage change for the urban index is 14.66 per cent in February.
“This is higher than 14.23 per cent reported in January, while the corresponding rural inflation rate in February is 13.48 per cent compared to 13.04 per cent recorded in January,” the report stated.
It added that the composite food index rose by 21.79 per cent in February compared to 20.57 per cent in January.
It said the rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, meat, food products, fruits, vegetables, fish, oils and fats.
It added that on month-on-month basis, the food sub-index increased by 1.89 per cent in, up by 0.06 per cent points from 1.83 per cent recorded in January.
The bureau said that “All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 12.38 per cent in February, up by 0.53 per cent when compared with 11.85 per cent recorded in January.
“On month-on-month basis, the core sub-index increased by 1.21 per cent in February. This was down by 0.05 per cent when compared with 1.26 per cent recorded in January.
“The highest increases were recorded in prices of passenger transport by air, medical services, miscellaneous services relating to the dwelling, hospital services and passenger transport by road.
“Others are pharmaceutical products, paramedical services, repair of furniture, vehicle spare parts, maintenance and repair of personal transport equipment, motor cars, dental services and hairdressing salons and personal grooming establishment,” NBS stated.
For state profile, the NBS said in February, all items inflation on year-on-year basis was highest in Kogi (24.73 per cent), Bauchi (22.92 per cent) and Ebonyi (20.45 per cent).
Meanwhile Enugu (14.73 per cent), Kwara (14.25 per cent) and Cross River (12.97 per cent) recorded the slowest rise in headline year-on-year inflation.
On month-on-month basis, however, February all items inflation was highest in Kogi (3.25 per cent), Ondo (2.46 per cent) and Kebbi (2.43 per cent). However, Kwara at 0.84 per cent, Kano (0.70 per cent) and Oyo (0.38 per cent) recorded the slowest rise in headline month on month.
For food inflation, on a year-on-year basis, it was highest in Kogi (30.47 per cent), Ebonyi (25.73 per cent) and Sokoto (25.68 per cent).
The report said Gombe (19.32 per cent), Bauchi (18.74 per cent) and Akwa Ibom (18.7 per cent) recorded the slowest rise in year on year inflation.
On month-on-month basis, however, food inflation was highest in Kogi (3.34 per cent), Ondo (3.33 per cent) and Ebonyi (3.26 per cent).
It added that Benue and Niger recorded 0.90 per cent, Kano (0.7per cent) and Oyo (0.09 per cent) recorded the slowest rise in month-on-month food inflation.
The persistent rise in the consumer price index indicates that Nigerians are spending more thereby reducing the purchasing power of an average consumer.
The inflationary pressure was compounded in 2020 as a result of the covid-19 pandemic, which crippled the supply chain and halted business activities in most aspects of the economy. Increased inflation rate and a further increase in the country’s unemployment rate at 33.3per cent is a major cause for worry as to the direction the Nigerian economy is taking.