Nigeria’s Inflation Falls the First Time in 21 Months

Inflation in April stood at 18.12 per cent, the second-highest in four years.

Nigeria’s inflation rate reduced by 0.05 per cent in April compared to what obtained in March, the National Bureau of Statistics said in a report Monday.

The bureau said while inflation rate stood at 18.17 per cent in March, it reduced to 18.12 per cent in April.

It is the first fall in Nigeria’s inflation rate in the last 21 months. The last time inflation dropped in Nigeria was in August 2019 when it fell from 11.08 per cent to 11.02 per cent.

The latest rate is contained in the NBS’s Consumer Price Index (CPI) report for April 2021 released on Monday in Abuja.

The CPI measures the average change over time in prices of goods and services for day-to-day living.

“On month-on-month basis, the headline index increased by 0.97 per cent in April. This is 0.59 percentage points higher than the rate recorded in March (1.56 per cent),” the report said.

The NBS said that the percentage change in the average composite of CPI for the 12 months period ending in April over the average of CPI for the previous 12 months period was 15.04 per cent.

This, it said, represented a 0.48 per cent increase over 14.55 per cent recorded in March.

It, however, said that the rural index also rose by 0.95 per cent in April, down by 0.57 per cent, compared to the 1.52 per cent rate recorded in March.

“The corresponding twelve-month year-on-year average percentage change for the urban index is 15.63 per cent in April.

“This is higher than 15.15 per cent reported in March, while the corresponding rural inflation rate in April is 14.48 per cent compared to 13 per cent recorded in March,” it stated.

Food Inflation

The NBS said that composite food index rose by 22.72 per cent in April compared to 22.95 per cent in March, another decrease.

It added that on month-on-month basis, the food sub-index increased by 0.99 per cent in April, down by 0.91 per cent from 1.90 per cent recorded in March.

It said the rise in the food index was caused by increases in prices of coffee, tea and cocoa, bread and cereals, soft drinks, milk, cheese and eggs, vegetables, meat, oil and fats, fish and potatoes, yam and other tubers.