- Nigeria’s inflation rate rises to 11.37% in April 2019 – t is 0.12% points higher than the rate recorded in March 2019.
- Food index increases by 13.70% for the month compared to 13.45% in March 2019.
- The NBS report states that rise in the food index was caused by increases in the prices of Meat, Fish, Oils and fats, Bread and cereals, Fish, Milk, Cheese and egg, Potatoes, Yam and other tubers, Fruits and Vegetables.
Nigeria’s inflation rate rose to 11.37% in April from 11.25% recorded in March 2019, the National Bureau of Statistics (NBS) has said.
The Bureau, in its “CPI and Inflation Report’’ for April 2019 released in Abuja on Wednesday, said the figure was 0.12% points higher than the rate recorded in March 2019 (11.25%)
According to NBS, the percentage change in the average composite CPI for the twelve months period ending April 2019 over the average of the CPI for the previous twelve months period was 11.31%, showing 0.09% point from 11.40% recorded in March 2019.
The consumer price index (CPI) examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care in an economy.
As inflation rises, businesses are forced to raise prices, banks are forced to raise interest rates in order to maintain a profit margin and higher rates means that marginal businesses will fail, thus increasing unemployment and harming the overall economy. That’s why government and policymakers use the result of CPI to cushion the negative effect of inflation on the economy and masses.
- On a month-on-month basis, inflation increased by 0.94% in April 2019, this is 0.15% rate higher than the rate recorded in March 2019 at 0.79%.
- Urban inflation rate increased by 11.70% (year-on-year) in April 2019 from 11.54% recorded in March 2019
- Rural inflation rate increased by 11.08% in April 2019 from 10.99% in March 2019.
- The composite food index rose by 13.70% in April 2019 compared to 13.45% in March 2019.
- Kaduna (16.77%), Kebbi (16.75%) and Kwara (16.34%) recorded the highest food inflation last month.
- Rivers (12.01%), Bayelsa (11.25%) and Kogi (10.49%) recorded the slowest rise.
- On month on month basis, however, April 2019 food inflation was highest in Edo (2.55%), Kebbi (2.34%) and Ogun (2.28%), while Rivers recorded no change, Abuja and Kogi recorded food price deflation.
“This rise in the food index was caused by increases in the prices of Meat, Fish, Oils and fats, Bread and cereals, Fish, Milk, Cheese and egg, Potatoes, Yam and other tubers, Fruits and Vegetables,” NBS said in the report.
Meanwhile, in its post-election strategies, the Central Bank of Nigeria (CBN) had predicted inflation rising to 12% this year before moderating.
The apex bank also projected that the Nigerian economy will grow by 3% in 2019, higher than the 1.93% recorded in 2018.