Consumer price index (CPI) which measures inflation increased by 15.75 percent (year-on-year) in December 2020. This is 0.86 percent points higher than the rate recorded in November 2020 (14.89) percent.
Increases were recorded in all COICOP divisions that yielded the Headline index.
On a month-on-month basis, the Headline index increased by 1.61 percent in December 2020. This 0.01 percent rate higher than the rate recorded in November 2020 (1.60 percent).
The percentage change in the average composite CPI for the twelve months period ending December 2020 over the average of the CPI for the previous twelve months period was 13.25 percent, representing a 0.33 percent point increase over 12.92 percent recorded in November 2020.
The urban inflation rate increased by 16.33 percent (year-on-year) in December 2020 from 15.47 percent recorded in November 2020, while the rural inflation rate increased by 15.20 percent in December 2020 from 14.33 percent in November 2020.
On a month-on-month basis, the urban index rose by 1.65 percent in December 2020, same as the rate recorded in November 2020, while the rural index also rose by 1.58 percent in December 2020, up by 0.02 percent above the rate that was recorded in November 2020 (1.56 percent).
The corresponding twelve-month year-on-year average percentage change for the urban index is 13.86 percent in December 2020. This is higher than 13.55 percent reported in November 2020, while the corresponding rural inflation rate in December 2020 was 12.67 percent compared to 12.35 percent recorded in November 2020.
Food Index
The composite food index rose by 19.56 percent in December 2020 compared to 18.30 percent in November 2020.
This rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, yam and other tubers, Meat, Fruits, Vegetable, Fish and Oils and fats.
On a month-on-month basis, the food sub-index increased by 2.05 percent in December 2020, up by 0.01 percent points from 2.04 percent recorded in November 2020.
The average annual rate of change of the Food sub-index for the twelve-month period ending December 2020 over the previous twelve-month average was 16.17 percent, 0.42 percent points from the average annual rate of change recorded in November 2020 (15.75) percent.
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All Items Less Farm Produce
The “All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 11.37 percent in December 2020, up by 0.32 percent when compared with 11.05 percent recorded in November 2020.
On a month-on-month basis, the core sub-index increased by 1.10 percent in December 2020. This was up by 0.39 percent when compared with 0.71 percent recorded in November 2020.
The highest increases were recorded in prices of Passenger transport by air, Medical services, Hospital services, Shoes and other footwear, Passenger transport by road, Miscellaneous services relating to the dwelling, Hairdressing salons and personal grooming establishments, Repair of furniture, Vehicle spare parts, Pharmaceutical products, Motor cars, Maintenance and repair of personal transport equipment, Paramedical services, Motor cycle, Dental services and Bicycles.
The average 12-month annual rate of change of the index was 10.31 percent for the twelve-month period ending December 2020; this is 0.17 percent points higher than 10.14 percent recorded in November 2020.
State Profiles
In analysing price movements under this section, note that the CPI is weighted by consumption expenditure patterns which differ across states. Accordingly, the weight assigned to a particular food or non-food item may differ from state to state making interstate comparisons of consumption basket inadvisable and potentially misleading.
All Items Inflation
In December 2020, all items inflation on year on year basis was highest in Bauchi (19.85%), Edo (18.15%) and Kogi (18.40%), while Lagos (14.05%), Kwara (13.91%) and Abia (13.30%) recorded the slowest rise in headline Year on Year inflation.
On month on month basis, however, December 2020 all items inflation was highest in Nasarawa (2.30%), Gombe (2.20%) and Akwa Ibom (2.16%), while Ekiti (0.87%), River (0.67%) and Ebonyi (0.61%) recorded the slowest rise in headline month on month inflation.
Food Inflation
In December 2020, food inflation on a year on year basis was highest in Edo (24.14%), Kogi (23.14%) and Sokoto (22.24%), while Bauchi (16.53%), Abia (16.04%) and Nasarawa (15.71%) recorded the slowest rise.
On month on month basis, however, December 2020 food inflation was highest in Edo (3.68%), Benin (3.48%) and Gombe (3.00%), while River (0.93%), Osun (0.59%) and Ekiti (0.24%) recorded the slowest rise.
