Nigeria’s year-on-year inflation rate (consumer price index, abb. “CPI”) slowed, albeit marginally, for the first time in three months and was recorded at 11.26%, compared to 11.28% in September 2018 according to the National Bureau of Statistics.
The urban inflation rate increase by 11.64% year-on-year in October (vs 11.70% in September), while the rural inflation rate rose by 10.93% year-on-year (vs 10.92% in September).
However, despite a fall in the headline index, the composite food index rose by 13.28% in October, compared to the 13.31% rise in September. Changes in the prices of fruits, meats, vegetables, oils and fats were the primary drivers of the increase. Year-on-year food inflation was highest in Bayelsa (16.36%), Abuja (15.85%) and Tarab (15.27%), while the slowest rises were found in Bauchi (12.17%), Oyo (11.76%) and Plateau (11.36%). On a month-on-month basis, Kogi (2.28%), Plateau (2.42%) and Nasarawa (2.17%) were the highest, while on the opposite end of the spectrum Akwa Ibom, Benue, Kwara and Ondo all experience deflationary changes in food prices.
The Central Bank of Nigeria’s Monetary Policy Committee is scheduled to announce a decision on its key interest rate on Thursday 22nd November, which is currently standing at a record high of 14%. Despite the inflationary pressures that are currently affecting the country, the general consensus amongst analyst is that the committee will hold the current rate.