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Tag: Inflation

  • Inflation in Nigeria rises to 12.34 per cent

    Inflation in Nigeria rises to 12.34 per cent

    Inflation in Nigeria increased to 12.34 percent year-on-year in the month of April 2020, data from the National Bureau of Statistics (NBS) said on Thursday afternoon.

    The agency said the inflation figure recorded a marginal 0.08 percent increment when compared with the rate it was in March 2020, which was 12.26 percent.

    The rise was attributed to increase in food prices during month as well as the effect of the lockdown in the whole of April due to the coronavirus pandemic.

    According to the NBS, the composite food index last month rose by 15.03 percent from 14.98 percent in March 2020

    “This rise in the food index was caused by increases in prices of potatoes, yam and other tubers, bread and

    cereals, fish, oils and fats, meat, fruits and vegetables,” a report from the Mr Yemi Kale-led agency said.

    The inflation figure for April fell below projections made by analysts, including the Financial Derivatives Company, which forecast about 14 percent rise due to the movement cessation in the month.

    The stats office said on month-on-month basis, the headline index increased by 1.02 percent in April 2020, about 0.18 percent rate higher than the rate recorded in March 2020, 0.84 percent.

    The agency stated that the urban inflation rate increased by 13.01 percent year-on-year in April 2020 from 12.93 percent recorded in March 2020, while the rural inflation rate increased by 11.73 percent in April 2020 from 11.64 percent in March 2020.

    In addition, on a month-on-month basis, the urban index rose by 1.06 percent in April 2020, up by 0.18 from 0.88 percent recorded in March 2020, while the rural index also rose by 0.98 percent in April 2020, up by 0.18 from the rate recorded in March 2020, 0.80 percent.

    It further said the corresponding 12-month year-on-year average percentage change for the urban index was 12.26 percent in April 2020. This is higher than 12.15 percent reported in March 2020, while the corresponding rural inflation rate in April 2020 was 11.20 percent compared with 11.14 percent recorded in March 2020.

    The NBS said in April 2020, all items inflation on year-on-year basis was highest in Bauchi (14.44 percent), Sokoto (13.99 percent) and Plateau (13.68 percent), while Edo (10.87 percent), Abuja (10.81 percent) and Kwara (8.98 percent) recorded the slowest rise in headline year-on-year inflation.

    On month-on-month basis, however, April 2020 all items inflation was highest in Akwa Ibom (2.01 percent), Oyo (1.91 percent) and Abia (1.81 percent), while Edo, Enugu and Bayelsa recorded price deflation or negative inflation (general decrease in the general price level or negative inflation rate).

    Furthermore, In April 2020, food inflation on a year on year basis was highest in Sokoto (17.88 percent), Akwa Ibom (17.55 percent) and Abuja (17.65 percent), while Ebonyi (13.04 percent), Edo (12.90 percent) and Enugu (12.89 percent) recorded the slowest rise.

    On month-on-month basis, however, April 2020 food inflation was highest in Akwa Ibom (2.65 percent), Lagos (2.49 percent) and Oyo (2.33 percent), while Bayelsa, Ebonyi and Enugu recorded price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).

  • Nigeria’s inflation rate hits 12.26 percent

    Nigeria’s inflation rate hits 12.26 percent

    Nigeria’s inflation rate has hit 12.26 percent in March 2020, the National Bureau of Statistics reports on Tuesday.

    According to the NBS, the consumer price index, (CPI) which measured inflation increased by 12.26 percent (year-on-year) in March 2020.

    This is 0.06 percent points higher than the rate recorded in February 2020 (12.20) percent.

    The NBS said the lockdown in Abuja, Lagos and Ogun States and various major disruptions in normal economic activity in several States since then, started in April 2020 and accordingly would not have any major impact on March 2020 Inflation which this report focused on.

    “Increases were recorded in all COICOP divisions that yielded the Headline index.

    “On month-on-month basis, the Headline index increased by 0.84 percent in March 2020. This is 0.05 percent higher than the rate recorded in February 2020 (0.79 percent),” it said.

  • COVID-19: Seven Ways to Protect Yourself from Inflation

    By Ellie Richards

    Recently, the entire world has been affected by the wave of inflation. From the United States to Australia, every part of the world has witnessed the ballooning inflation.

    Whether it is a rise in the prices of daily commodities or an increase in property rates, the effects of inflation could be seen in every single sector.

    While inflation affects the entire economy of a nation at a larger extent, its effects can also be observed in the daily lives of the common people.

    As the prices of goods and services rise, the amount of money spent earlier to buy a specific quantity of a product would now not be enough to buy a similar quantity of the same product.

    Thus, inflation increases the entire cost of living of the people in an economy. It also reduces the purchasing power of every unit of currency, eventually decreasing the value of a country’s currency.

    Additionally, once there is an increase in the prices of goods and services, it is likely that the prices will either remain the same or increase further without much possibility of a reduction in the inflated prices.

    Hence, it becomes extremely important for people to keep themselves prepared for any increase in prices. One of the common beliefs practised from years is a penny save is a penny earned. While this common belief cannot be implemented in today’s world, one needs to be ready to deal with the corrosive impact of growing prices on the economy.

    To help you safeguard yourself from inflation, we have compiled a list of 7 ways to save and invest money to reap its benefits in the long run.

    Invest in the Stock Market

    While investing in the stock market can be a bit tricky, if done wisely, it can be a good way to fight inflation. As the prices in an economy rise, the corporations are likely to sell their goods at increased prices. This leads to a growth in the company’s revenues, its earnings and results in an upsurge of its stock prices. However, while investing in the stock market, ensure that you put money in companies which have the tendency to increase their prices naturally at the time of inflation. For example, companies which deal with commodities or products like grains, oil and metals enjoy the pricing power at the time inflation more than the manufacturers and distributors of electronics equipment.

    Buy Precious Metals

    Precious metals such as gold and silver can act as great assets to protect yourself from the growing inflation. With a decrease in the value of the dollar, there is an increase in the value of these precious metals. Also, there is a difference in the demand and supply of gold and silver. While silver has a limited supply and is mostly used by large companies across the world, gold is saved by people at household levels. Experts suggest, keeping a mix of both physical gold and silver on hand can be a great way to protect one from the growing inflation. However, before buying gold and silver, make sure that you buy it from verified dealers and avoid yourself from being scammed.

    Invest in other currency

    Economists of different countries generally compare the value of their currency with the American dollar to see if there is any appreciation or depreciation in their currency. The trends suggest that a decrease in the American currency results in an increase in the value of other currencies and vice versa. As investing in any currency can be risky for beginners, conduct an in-depth study of the currency trends before investing. Also, rather than investing in a single currency, try to diversify your investments in different currencies. Furthermore, to save yourself from getting duped, instead of buying paper currency, it is wise to keep physical currency in hand.

    Buy a Property

    Property is another great asset which can save you from inflation. Whether it is a house for yourself or a plot of land or a positive cashflow real estate, investing in the right property can be rewarding. For example, buying a house for yourself will save you from increased rents during inflation. Additionally, if you own land at a lower price, after inflation, you can get a good amount of money if you decide to sell it. Whereas, if you buy an additional real estate, renting it out will help you generate a passive income for the coming years.

    Start a Side Business

    In today’s world, depending on a single source to generate income is not sufficient. If you are working in a full-time job, you might have very little control over your monthly income. By starting a side business, you begin to build your asset that sees an increase and decrease in its value with the rise and fall of inflation. At the time of inflation, this side business can help you generate extra cash flow every month, which will cushion the consequences of inflation and will also give you the power to save some extra money.

    Save Money at Better Paying Interest Rates

    Whether there is inflation or not, saving physical cash is always a good idea. To get the most out of your savings, check out for saving schemes which come at highest paying interest rates. The rise in inflation will have no significant effect on your money and it will be safe in the banks. Additionally, the interest you will receive will make sure that your money keeps on increasing from time to time.

    Control your Expenses

    Although savings and investments are essential for staying safe from inflation, one of the most important factors which we neglect is controlling our expenses. So, if you have a habit of overindulging in shopping and buying things which are not needed, then think twice. Also, while applying for a loan for property or vehicle, do not forget to fix the rate of interest. This is one of the widely used hedging processes which will save you from paying increased interest rates as once the rate is fixed, you will no longer be subject to the growing expenses.

    Ellie Richards is an online Marketing Manager for Original PhD, specialising in PhD thesis writing. She is passionate about researching and writing on various topics, including Education, Marketing, and Technology.

  • COVID-19: Inflation hits prices of food commodities in FCT

    Prices of food items have shut-up in some parts of the Federal Capital Territory due to the coronavirus pandemic ravaging the globe in recent times.

    A market survey conducted at Lugbe, a satellite town in Abuja, on Monday by News Agency of Nigeria (NAN) indicated an upsurge in prices of many staple foods.

    Mr Abel Ikechukwu, who sells bags of rice, told NAN that the COVID-19 pandemic had really impacted on the price of rice in the FCT.

    According to Ikechukwu, prior to the COVID-19 pandemic, a bag of locally produced rice was selling at N14,500 and is now N19,500.

    He said the price of imported rice, previously selling between N22,000 and N23,000 now sells at N30,500.

    He further said that with the government’s lockdown order, prices of food commodities would continue to rise.

    Mrs Chioma Peters, a garri dealer, corroborated Ikechukwu’s view, saying COVID-19 scare was largely responsible for hike in the prices of food items in markets.

    Peters said that the price of a bag of garri (fried cassava flour), hitherto selling for N13,000, now sells at N16,000.

    She said that it was quite pathetic and that if the situation escalated or became prolonged, there could be untold hardship and hunger in the land.

    Isah Kabiru, who sells beans, said the COVID-19 pandemic had brought hardship to the common man “as food items witnessed a price increase’’.

    Kabiru said that a bag of beans, which previously sold at N16,500 now costs N18,000.

    Mr Isaiah Nkereuwem, a resident of Lugbe community, said the price of everything had gone up.

    “Even a bag of sachet water that we normally buy at N100 is now selling at between N120 and N150, depending on the brand,’’ Nkereuwem said.

    He also said that people who hawked water in trolleys had increased their prices.

    “As at this morning, I bought four containers of 25 litres at the rate of N200 as against the normal N100,’’ Nkereuwem said.

  • Just in: Nigeria’s inflation rate rises to 12.2%, highest in 21 months

    The National Bureau of Statistics on Tuesday said inflation rose by 12.20 percent year-on-year in February – highest inflation rate recorded by the economy in the last 21 months .

    The inflation rate of 12.2 percent, according to the bureau is 0.07 percentage points higher than the 12.13 percent recorded in January.

    The NBS said the urban inflation rate increased by 12.85 percent year-on-year in February from 12.78 percent recorded in January this year.

    On the other hand, the NBS report said the rural inflation rate increased by 11.61 percent in February from 11.54 percent recorded in January.

    On a month-on-month basis, the report said the urban index rose by 0.82 percent in February, up by 0.10 percentage points from the 0.92 percent recorded in January.

    It also said the rural index rose by 0.76 percent in February, down by 0.07 from the 0.83 percent recorded in January.

  • Inflation rises to 12.13% in January

    Inflation rises to 12.13% in January

    The National Bureau of Statistics (NBS) says the Consumer Price Index (CPI) which measures inflation increased by 12.13 per cent year-on-year in January 2020.

    The NBS made this known in its report on Inflation released on Tuesday.

    It stated that this increase was 0.15 per cent points higher than the rate recorded in December 2019, which was 11.98 per cent.

    The bureau explained that the increases were recorded in all Classification of Individual Consumption by Purposes (COICOP) divisions that yielded the headline index.

    According to NBS, month-on-month basis, the headline index increased by 0.87 per cent in January 2020 and this is 0.02 per cent rate higher than the rate recorded in December 2019, which was 0.85 per cent.

    “The percentage change in the average composite CPI for the 12 months period ending January 2020, over the average of the CPI for the previous 12 months period was 11.46 per cent, showing 0.06 per cent point from 11.40 per cent recorded in December 2019.

    “The urban inflation rate increased from 12.62 per cent in December to 12.78 per cent year on year in January 2020, while the rural inflation rate increased from 11.41 per cent in December 2019 to 11.54 per cent in January 2020.

    “On a month-on-month basis, the urban index rose from 0.90 per cent recorded in December 2019 to 0.92 per cent in January 2020, up by 0.02 , while the rural index also rose by 0.83 per cent in January 2020, up by 0.01 from the rate recorded in December 2019, which was 0.82 per cent.

    “The corresponding 12-month year-on-year average percentage change for the urban index is 11.92 per cent in January 2020. This is higher than 11.83 per cent reported in December 2019.

    “While the corresponding rural inflation rate in January 2020 is 11.04 per cent compared to 11.00 per cent recorded in December 2019,” it explained.

    The bureau stated that the highest increase recorded was on oil and fats, fish, meat, potatoes, yam and other tubers as well as bread and cereals.

  • Nigeria: Inflation rate increases to 19-month high at 11.85%

    The National Bureau of Statistics on Tuesday released the Consumer Price Index, which measures inflation rate, with the index rising by 0.24 percentage points year on year from 11.61 per cent in October to 11.85 per cent in November.

    The November inflation rate of 11.85 per cent is the highest recorded by the country in the last 19 months.

    The last time the country’s inflation was as high 11.85 per cent was in April 2018 when inflation rate was put at 12.48 percent.

    The rise in inflation rate, according to experts, may be connected to the ongoing border closure which had made it difficult for products to be exported and imported into the country through the land borders.

    The NBS report reads in part,“The CPI, which measures inflation, increased by 11.85 per cent year-on-year in November 2019.

    “This is 0.24 per cent points higher than the rate recorded in October 2019 (11.61 per cent),” the bureau said.

    The NBS report revealed that the urban inflation rate increased by 12.47 per cent year-on-year in November from 12.2 per cent recorded in October, while the rural inflation rate increased by 11.30 per cent in November from 11.07 percent in October.

    On the food index, the NBS report said food inflation rose by 14.48 per cent in November compared to 14.09 per cent in October.

    The report attributed the rise in food index to increases in prices of bread, cereals, oils and fats, meat, potatoes, yam and other tubers, and fish.

    On a month-on-month basis, the report said food index increased by 1.25 per cent in November 2019, down by 0.08 per cent points from 1.33 per cent recorded in October.

    It said food inflation on a year-on-year basis was highest in Sokoto (18.77 per cent), Kebbi (18.08 per cent) and Ekiti (17.18 per cent), while Katsina (12.61 per cent), Bayelsa (12.50 per cent) and Bauchi (12.44 per cent) recorded the slowest rise.

     

  • Inflation rises by 11.85% in November 2019 — NBS

    The National Bureau of Statistics (NBS) said inflation increased by 11.85 per cent year on year in November 2019.

    The NBS made this known in ITS Consumer Price Index (CPI) and Inflation report for November released on Tuesday.

    The bureau said the development was 0.24 per cent points higher than the rate recorded in October 2019 which was 11.61 per cent.

    It explained that the increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the headline index.

    The NBS said in month-on-month basis, the headline index increased by 1.02 per cent in November 2019, adding that it was 0.05 per cent rate lower than the rate recorded in October 2019 which was 1.07 per cent.

    The bureau said that the percentage change in the average composite CPI for the twelve months period ending November 2019 over the average of the CPI for the previous twelve months period was 11.35 per cent.

    According to the NBS, the figure represents 0.05 per cent point from 11.30 per cent recorded in October 2019.

    The NBS report indicated that food sub-index within the period under review rose by 14.48 per cent year-on-year and 1.25 per cent month on month basis.

    It further explained that the highest increase recorded was on bread and cereal, fish, meat, potato, yam and other tubers as well as oil and fats.

    The bureau said urban index in November 2019 rose by 12.47 per cent year-on-year and 1.07 per cent month-on- month, while rural index increased by 11.30 per and 0.98 per cent year-on-year and month-on-month respectively.

  • Nigeria’s inflation rate drops by 0.06 per cent

    Nigeria’s inflation rate drops by 0.06 per cent

    The consumer price index, (CPI) which measures inflation increased by 11.02 percent (year-on-year) in August 2019. This is 0.06 percent points lower than the rate recorded in July 2019 (11.08) percent, the National Bureau of Statistics said today in its latest report.

    Its report showed that disinflation continued in August 2019 despite several pronouncements by government regarding restrictions on the import of some food items, minimum wage and the recent border closures.

    The effect of the 20 August border closure on prices may not be felt until in later months, it warned.

    “The inflation rate is also the average prices for the whole month and not only the price of goods and services in the last few days of the month. Furthermore, the harvest season and existing weak consumer demand and their natural effect to slow down food and other prices will also play a major role in determining the direction of inflation.

    “Against this backdrop, in August 2019, all major indices slowed except urban inflation year on year.

    “On month-on-month basis, the Headline index increased by 0.99 percent in August 2019. This is 0.02 percent rate lower than the rate recorded in July 2019 (1.01) percent.

    “The percentage change in the average composite CPI for the twelve months period ending August 2019 over the average of the CPI for the previous twelve months period was 11.271 percent, showing 0.02 percent point from 11.291 percent recorded in July 2019.

    “The urban inflation rate increased by 11.48 percent (year-on-year) in August 2019 from 11.43 percent recorded in July 2019, while the rural inflation rate increased by 10.61 percent in August 2019 from 10.64 percent in July 2019.

    “On a month-on-month basis, the urban index rose by 1.04 percent in August 2019, down by 0.03 from 1.07 percent recorded in July 2019, while the rural index also rose by 0.93 percent in August 2019, down by 0.03 fromtherate recordedinJuly2019(0.96)percent.

    “The corresponding twelve-month year-on-year average percentage change for the urban index is 11.62 percent in August 2019. This is less than 11.64 percent reported in July 2019, while the corresponding rural inflation rate in August 2019 is 10.95 percent compared to 10.97 percent recorded in July 2019.”

  • Emefiele pledges to bring inflation to single digit within 5 years

    The Central Bank of Nigeria (CBN) Governor, Mr Godwin Emefiele, says he will bring inflation to single digit within the next five years.

    Emefiele made the promise in Abuja on Monday during a press briefing on his policy road map in his second term.

    The News Agency of Nigeria (NAN) reports that the inflation rate dropped to 11.4 per cent as at May.

    He said that CBN, under his leadership, would ensure that monetary policy measures would be geared towards containing inflationary pressures.

    Emefiele said that he would also support improved productivity in the agricultural and manufacturing sectors.

    He stressed that he would strive to continue to sustain a positive interest rate regime to the delight of the bank’s important stakeholders.

    According to Emefiele, the decisions of the Monetary Policy Committee on inflation and interest rates will depend on data on key economic variables.

    “We will work with other stakeholders and we shall bring down the cost of food items which has considerable weight in the Consumer Price Index basket.

    “Our ultimate objective is to anchor the public’s inflation expectation at single digits in the medium to long-term.

    “We believe that a low and stable inflationary environment is essential to the growth of our economy because it will help support long-term planning by individuals and businesses.

    “Such will also help to lower interest rates charged by banks to businesses thereby facilitating improved access to credit and corresponding growth in output and employment,” he said.

    Emefiele said that macro-economic stability was key to supporting improved Growth Domestic Product (GDP) growth and greater private sector investment.

    “The bank will leverage monetary policy tools in supporting a low inflation environment, while seeking to maintain stability of the exchange rate,’’ he said.