According to the report, this rise in the food index was caused by increases in prices of Bread and Cereals, Fish, Meat, Vegetables, and Oils and fats.
The Nigerian Bureau of Statistics (NBS) stated this in its consumer price index (CPI) report for February 2020 released in Abuja on Tuesday, March 17th, 2019.
"Increases were recorded in all Classification of Individual Consumption According to Purpose (COICOP) divisions that yielded the Headline index.
“On a month-on-month basis, the Headline index increased by 0.79% in February 2020. This is 0.08 percent rate lower than the rate recorded in January 2020 (0.87%)," the report states.
Key highlights from the February 2020 Nigeria’s inflation figures:
- The food inflation rose by 14.90% in February 2020 compared to 14.85% in January 2020.
- The food sub-index increased to 13.98%, 0.12% points from the average annual rate of change recorded in January 2020 (13.86%).
- This rise in the food index was caused by increases in prices of Bread and Cereals, Fish, Meat, Vegetables, and Oils and fats.
- The food sub-index increased by 0.87% in February 2020, down by 0.12% points from 0.99% recorded in January 2020.
- Core inflation advanced by 8 bps to 9.43 % YoY (January 2020: 9.35% YoY)
- Urban inflation rose by 7 bps to 12.85% year-on-year. Similarly, Rural inflation climbed by 6 bps 11.61% year-on-year.
How rising inflation affects individuals:
Salary earners, especially those on a fixed income like minimum wage may find it difficult to get more items as purchasing power will drastically reduce.
It may also force the central bank to increase the country's interest rate in order to moderate the spike in the short run, putting pressure on the loan facility.
Analysts at Afrinvest expect exchange rate pressures and supply chain disruptions with trade partners to impact domestic consumer prices in the coming months as a result of the COVID-19 pandemic.