Friday, December 14, 2018 6.30PM /
Bukola Akinyele for Proshare WebTV
The November, 2018 consumer price index (CPI) latest report released today by the National Bureau of Statistics, (NBS) showed that the increase by 11.28% which is 0.02 points higher than the 11.26% rate recorded in October 2018.
In this article we highlight 7 key takeaways from the Nigeria November, 2018 Headline Inflation report;
0.80% Month-on-Month Increase in CPI
From the Analysis, on a month-on-month basis the Headline index increased by 0.80% in November 2018, up by 0.006% points from the rate recorded in October 2018 (0.74%).
Urban and Rural inflation increase
The urban inflation rate increased by 11.61% (year-on-year) in November 2018 from 11.64% recorded in October 2018, while the rural inflation rate increased by 10.99 percent in November 2018 from 10.93 percent in October 2018.
On a month-on-month basis, the urban index rose by 0.83 percent in November 2018, up by 0.07 from 0.76 percent recorded in October 2018,while rural index also rose by 0.78 percent in November 2018, down by 0.06 percent from the rate recorded in October 2018 (0.72) percent.
The corresponding twelve-month year-on-year average percentage change for the urban index was 12.83 percent in November 2018. This is less than 13.21 percent reported in October 2018, while the corresponding rural inflation rate in November 2018 was 12.05 percent compared to 12.42 percent recorded in October 2018.
Increased in Food Index
The composite food index rose 13.30 percent in November 2018 compared to 13.28 percent in October 2018.
This rise in the food index was caused by increases in prices of Bread and cereals, Milk, cheese and egg, Fish, Vegetables, Fruits, Oil and fats, Potatoes, yams and other tubers.
On month-on-month basis, the food sub-index increased by 0.90 percent in November 2018, up by 0.08 percent from 0.82 percent recorded in October 2018.
Increase in Price of Goods and Services
The highest increases were recorded in prices of major household appliances, Fuels and lubricants for personal transport equipment, Repair of household appliances, Dental services, and household services, Medical services, Hospital services, Vehicle spare parts, Shoes and other footwear, and cleaning, repair and hire of clothing.
State Profile on Inflation
In November 2018, all items inflation on year on year basis was highest in Rivers (13.09%), Taraba (12.99%) and Ekiti (12.70%),while Ogun (9.52%), Kwara (8.74%) and Cross River (8.72%) recorded the slowest rise in headline Year on Year inflation.
In November 2018, food inflation was highest in Edo (2.68%), Kwara (2.67%) and Nassarawa (2.16%), while Bayelsa, Delta, Ebonyi, Kaduna, Kogi, Taraba and Yobe all recorded food price deflation or negative inflation (general decrease in the general price level of goods and services or a negative inflation rate) in November 2018.
Still Within The 2018 FGN Inflation target
At 11.28% the November, 2018 inflation rate is still within the target of the Federal Government of Nigeria which is 12.4%.
With just one month left to end the year, it is most likely that the inflation rate will not exceed the 12.4% mark set by the FG.
Economic Indicators-High Inflation, Slow Growth
The economic indicators for Nigeria show a slow economic growth of 1.8% from the recent Q3, 2018 GDP report, a moderate inflation rate of 11.28% and a high interest rate regime of 14%.
Next week the Nigerian unemployment rate will be released by the National Bureau of Statistics.