Inflation rate drops to 18.12% in April – NBS
The National Bureau of Statistics (NBS) has said headline inflation dropped to 18.12 per cent, 0.05 per cent lower than 18.17 per cent recorded in March 2021.
NBS in its Consumer Price Index, (CPI) on Monday said, “on month-on-month basis, the headline index increased by 0.97 per cent in April 2021, this is 0.59 per cent rate lower than the rate recorded in March 2021 (1.56) per cent.
“The percentage change in the average composite CPI for the twelve months period ending April 2021 over the average of the CPI for the previous twelve months period was 15.04 per cent, showing 0.48 per cent point from 14.55 per cent recorded in March 2021.
“The urban inflation rate increased by 18.68 per cent (year-on-year) in April 2021 from 18.76 per cent recorded in March 2021, while the rural inflation rate increased by 17.57 per cent in April 2021 from 17.60 percent in March 2021.
“On a month-on-month basis, the urban index rose by 0.99 per cent in April 2021, down by 0.61 the rate recorded in March 2021 (1.60), while the rural index also rose by 0.95 per cent in April 2021, down by 0.57 the rate that was recorded in March 2021 (1.52) per cent.
“The corresponding twelve-month year-on-year average percentage change for the urban index is 15.63 percent in April 2021.
“This is higher than 15.15 per cent reported in March 2021, while the corresponding rural inflation rate in April 2021 is 14.48 per cent compared to 13.99 per cent recorded in March 2021.
On Food Index, the report by NBS said, “The composite food index rose by 22.72 per cent in April 2021 compared to 22.95 per cent in March 2021.
“This rise in the food index was caused by increases in prices of Coffee, tea and cocoa,
“Bread and cereals, Soft drinks, Milk, cheese and egg, Vegetable, Meat, Oils and fats, Fish and Potatoes, yam and other tubers.
“On month-on-month basis, the food sub-index increased by 0.99 per cent in April 2021, down by 0.91 per cent points from 1.90 per cent recorded in March 2021.
“The average annual rate of change of the Food sub-index for the twelve-month period ending April 2021 over the previous twelve-month average was 18.58 per cent, 0.65 percent points from the average annual rate of change recorded in March 2021 (17.93) per cent.”
According to the report, “The ‘All items less farm produce’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 12.74 percent in April 2021, up by 0.07 per cent when compared with 12.67 per cent recorded in March 2021.
“On month-on-month basis, the core sub-index increased by 0.99 per cent in April 2021. This was down by 0.07 percent when compared with 1.06 per cent recorded in March 2021.
“The highest increases were recorded in prices of Pharmaceutical products, Vehicle spare parts, Hairdressing salons and personal grooming establishment, Garments, Furniture and furnishing, Medical services, Shoes and other foot wears, Motor cars, Major household appliances whether electric or not, Dental services, Hospital services, Non- durable household goods and Fuel and lubricants for personal transport equipment.
“The average 12-month annual rate of change of the index was 11.25 per cent for the twelve-month period ending April 2021; this is 0.24 per cent points higher than 11.01 percent recorded in March 2021.
“In analysing price movements under this section, note that the CPI is weighted by consumption expenditure patterns which differ across states. Accordingly, the weight assigned to a particular food or non-food item may differ from state to state making interstate comparisons of consumption basket inadvisable and potentially misleading.”
NBS said, in April 2021, all items inflation on year on year basis was highest in Kogi (24.33 per cent), Bauchi (22.93 per cent) and Sokoto (20.96 per cent), while Abia (15.94 per cent), Kwara (15.70 per cent) and Katsina (15.58 per cent) recorded the slowest rise in headline Year on Year inflation.
The report explained further that, “On month on month basis however, April 2021 all items inflation was highest in Kebbi (2.24 per cent), Cross River (1.99 per cent) and Jigawa (1.78 per cent), while Ebonyi (0.12 per cent) recorded the slowest rise in headline month on month with River and Ogun recording price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).
“In April 2021, food inflation on a year on year basis was highest in Kogi (30.52 per cent), Ebonyi (28.07 per cent) and Sokoto (26.90 per cent), while Abuja (18.63 per cent), Akwa Ibom (18.51 per cent) and Bauchi (17.64 per cent) recorded the slowest rise in year on year inflation.
“On month on month basis however, April 2021 food inflation was highest in Kebbi (2.46 per cent), Ekiti (2.42 per cent) and Kano (2.17 per cent), while Abuja (0.05 per cent) recorded the slowest rise in month on month food inflation with Rivers and Ogun recording price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).”
