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The Financial Derivatives Company (FDC) had made an earlier prediction that Nigeria’s inflation rate will go up to 14.56%.
That is not far from the data from the Consumer Price Index (CPI) report by the National Bureau of Statistics (NBS) showing an inflation rate of 13.71% in Nigeria in September 2020.
The year-on-year inflation rate of 13.71% also tops the 13.22% record of August 2020 by 0.49%. Food inflation rate or composite food index is the major driver of the total rate and it rose by 16.66% in September 2020.
Zamfara, Kogi, and Plateau states recorded that highest rate. Nassarawa, Lagos and Ondo states recorded the slowest rise in food inflation in September 2020.
Analysts in Nigeria predict that food inflation will go higher in November and December, especially measured by the upcoming festivities.
Excluding volatile agricultural produce, core inflation was at 10.58% September 2020.
Inflation rate in Nigeria
This voluntarily translates that the forecast for commodity prices was more than anticipated. However, it is important that the inflation rate is going in the right direction.
The impact of the supply shortages within the country is still not at balance with the demands. More so, forex problems, which has seen the CBN rationing dollars for importers and not meeting demands trump inflation rate.
Developing story…
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