Headline inflation hits 14.89 per cent

Nigeria’s headline inflation has risen for the 15th month to hit14.89 in November, the Consumers Price Index (CPI) released by the National Bureau of Statistics (NBS) yesterday has shown.
 
According to the NBS, ‘the percentage change in the average composite CPI for the 12months period ending November 2020 over the average of the CPI for the previous 12 months period was 12.92 percent, representing a 0.26 percentage point increase over 12.66 per cent recorded in October 2020.

“On a month-on-month basis, the urban index rose by 1.65 per cent in November 2020, up by 0.05, from 1.60 percent recorded in October 2020 while the rural index also rose by 1.56 per cent in November 2020, up by 0.08 from 1.48 per cent recorded in October 2020.”

It said the urban inflation rate increased by 15.47 per cent (year-on-year) in November 2020 from 14.81 per cent recorded in October 2020 while the rural inflation rate increased by 14.33 per cent in November 2020 from 13.68 percent in October 2020.  
On a month-on-month basis, the headline inflation increased by 1.6 per cent in November 2020. This is 0.06 percentage points higher than the rate recorded in October 2020 (1.54 per cent).

Reacting to the development, a Professor of Capital Market and Finance at the Nasarawa State University, Uche Uwaleke, said the inflation figures for November are a reflection of the lingering impact of COVID’19 and legacy issues of insecurity, border closure, increase in VAT, hike in the pump price of fuel and exchange rate crisis.

An Economist with ActionAid Nigeria, Kenneth Okoinene regretted that the rise in prices would affect Nigerians as they celebrate Christmas and New Year.

A development economist, Mr. Odilim Enwegbara, said the escalating inflation rate is indicative of a failed state.