The inflation rate in Nigeria rose to 13.71 per cent (year-on-year) in September 2020 indicating 0.49 per cent point higher than 13.22 per cent recorded in August 2020.
The National Bureau of Statistics (NBS) disclosed this in its monthly Consumer Price Index (CPI) report.
According to the report, this is 0.49 percent points higher than the rate recorded in August 2020 (13.22) percent.
Read the full report below:
The consumer price index, (CPI) which measures inflation increased by 13.71 percent (year-on-year) in September 2020.
This is 0.49 percent points higher than the rate recorded in August 2020 (13.22) percent.
Increases were recorded in all COICOP divisions that yielded the Headline index.
On a month-on-month basis, the Headline index increased by 1.48 percent in September 2020. This is 0.14 percent rate higher than the rate recorded in August 2020 (1.34) percent.
The percentage change in the average composite CPI for the twelve months period ending September 2020 over the average of the CPI for the previous twelve months period was 12.44 percent, showing 0.21 percent point from 12.23 percent recorded in August 2020.
On a month-on-month basis, the urban index rose by 1.56 percent in September 2020, up by 0.14 from 1.42 percent recorded in August 2020, while the rural index also rose by 1.40 percent in September 2020, up by 0.13 from the rate recorded in August 2020 (1.27 percent).
The urban inflation rate increased by 14.31 percent (year-on-year) in September 2020 from 13.83 percent recorded in August 2020, while the rural inflation rate increased by 13.14 percent in September 2020 from 12.65 percent in August 2020.
The corresponding twelve-month year-on-year average percentage change for the urban index is 13.07 percent in September 2020.
This is higher than 12.85 percent reported in August 2020, while the corresponding rural inflation rate in September 2020 is 11.86 percent compared to 11.66 percent recorded in August 2020.
The CPI measures the average change over time in the prices of goods and services consumed by people for day-to-day living.
The construction of the CPI combines economic theory, sampling, and other statistical techniques using data from other surveys to produce a weighted measure of average price changes in the Nigerian economy.
The weighting occurs to capture the importance of the selected commodities in the entire index. The production of the CPI requires the skills of economists, statisticians, computer scientists, data collectors, and others.
Key in the construction of the price index is the selection of the market basket of goods and services.
Every month, 10,534 informants spread across the country provide price data for the computation of the CPI. The market items currently comprise of 740 goods and services regularly priced.
Next we use the Laspeyres formula to compute an aggregated index for each class (which has a multitude of commodities which have similar consumption purposes):
Here the sum of the product of weights (obtained from the expenditure survey) and relative prices for each item is divided by the sum of the weight of the items in that class, and the result multiplied by 100 gives the required index number.
This index number is still classified according to the urban or rural classification sector for each of the 36 states and the FCT. This yields 85 classes then 48 groups which are then reclassified into 12 Divisions to derive:
- The country composite index
- The Urban National index
- The Rural National index
- The Combined Urban and Rural State Composite index
The survey methodology generates 3774 all items indices for all states and the FCT.
This edition of the Statistical News contains the revised Consumer Price Index (CPI) based on Nigeria Living Standard Survey (NLSS) 2003/2004.
The consumption expenditure data were re-valued to November 2009, which is the base period for the revised CPI.
The May 2003 and September 1985 based indices are being continued using factors derived from the new CPI. These indices will yield the same price change for any commodity group contained in all the series.