By Financescape
The Nigerian Bureau of Statistics released the consumer price index report for April 2021. The consumer price index, (CPI) which measures inflation increased by +18.12% (year-on-year) in April 2021. According to the NBS report, this is -0.05% points lower than the rate recorded in March 2021 +18.17% and February 2021 +17.33%. The headline consumer price index has (CPI) has recorded a high through the previous (year-on-year) with +15.75%.
The urban inflation rate increased by +18.68% (year-on-year) in April 2021 from +18.76% recorded in March 2021, while the rural inflation rate increased by +17.57% in April 2021 from +18.76% recorded in March 2021. On a month-on-month basis, the headline index increased by +0.97% in April 2021, This is a -0.59% rate lower than the rate recorded in March 2021+1.56%.
FOOD INDEX
The composite food index rose by 22.72% in April 2021 compared to 22.95% in March 2021. This rise in the food index was caused by increases in coffee, tea, cocoa, Bread and cereals, Potatoes, yam, and other tubers, Meat, Vegetables, Fish, and Oils and fats, and fruits. The consumer price Food sub-index On a month-on-month basis, increased by 0.99% in April 2021, down by 0.91% points from 1.90% recorded in March 2021, and 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%, 0.65% points from the average annual rate of change recorded in March 2021 17.93%.
ALL ITEMS LESS FARM PRODUCE OR CORE INFLATION
The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 12.74% in April 2021, up by 0.07% when compared with 12.67% recorded in March 2021. The report shows the highest increases were in prices of Pharmaceutical products, Vehicle spare parts, Hairdressing salons, and personal grooming establishment, Garments Furniture and Furnishing, Medical devices, Shoes, and other footwear, Motor cars, Major household appliances whether electric or not, Dental services, Hospital services, Non-durable household goods, and Fuel and lubricants, transport equipment. According to the report, the average 12-month annual rate of change of the index was 11.25% for the twelve-month period ending April 2021; this is 0.24% points higher than the 11.01% recorded in March 2021.
CONSUMER PRICE INDEX STATE ANALYSIS
In analyzing price movements across states NBS reported that in April 2021, all items inflation on year on year basis was highest in Kogi (24.33%), Bauchi (22.93%), and Sokoto (20.96%), while in Abia (15.94%), Kwara (15.70%) and Kastina (15.58%) recorded the slowest rise in headline Year on Year inflation. On month on monthly basis, in April 2021 all items inflation was highest in Kebbi (2.24%), Cross River (1.99%), and Jigawa (1.78%), while Ebonyi (0.21%), recorded the slowest rise in headline month on month with River and Ogun recording price deflation or negative inflation (general decrease level of food or negative food inflation rate)
FOOD INFLATION
NBS further stated, In April 2021, food inflation on a year on year basis was highest in Kogi (30.52%), Ebonyi (28.07%), and Sokoto (26.90%), while Abuja (18.63%), Akwa Ibom (18.51%), and Bauchi (17.64%) recorded the slowest rise in headline year on year inflation. While On month on month basis, however, April 2021 food inflation was highest in Kebbi (2.46%), Ekiti (2.42%), and Kano (2.17%), while Abuja (0.05%) recorded the slowest rise in a month on month food inflation 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).
Keynotes
The NBS Consumer Price Index report for April 2021 highlighted the following keynotes
- Headline Consumer Price Index in April 2021 rose by 18.12% Year-on-Year from 18.17% in March 2021 and 0.97% Month-on Month from 1.56% in March 2021.
- Food Sub-Index in April rose by 22.72% Year-on-Year from 22.95% in March 2021 and 99% Month-on-Month 1.90% in March 2021.
- Core Eub-Index in April 2021 rose by 12.74% Year-on-Year from 12.67% in March 2021 and 0.99% Month-on-Month from 1.06% in March 2021.
- Urban Index in April 2021 rose by 18.68% Year-on-Year from 18.76% in March 2021 and 0.99% Month-on-Month 2021.
- Rural Index in April rose by 17.57% Year-on-Year from 17.06% in March and 0.95% Month-on-Month from 1.52% in March 2021.
- State Profiles: All items inflation was highest on a Year-on-Year in Kogi 24.33% Slowest rise in headline inflation Kastina 15.58% while on Month-on-Month highest rise in Kebbi 2.24% slowest rise in River -0.87% and Food inflation was highest Year-on-Year in Kogi 30.52% slowest rise in Bauchi 17.64% while on Month-on-Month Kebbi 2.64% slowest rise in Ogun -1.40%.
