Inflation hits 11.61%, may kick economy into overdrive
Rapidly rising prices are causing consumers to stay away from staples, especially food. According to the data released by National Bureau of statistics (NBS), inflation rose to 11.61% in October.
The report said: “The urban inflation rate stood at 12.20 percent (year-on-year) in October 2019 from 11.78 percent recorded in September 2019, while the rural inflation rate was recorded at 11.07 percent in October 2019 from 10.77 percent in September 2019.”
This is an increase of 0.36 percentage points compared to 11.24% recorded in September.
It added:“On a year on year basis, the composite food index rose by 14.09 percent in October 2019 compared to 13.51 percent in September 2019.
“This rise in the food index was caused by increases in prices of meat, oils and fats, bread and cereals, potatoes, yam and other tubers, fish and vegetables.”
On a year-on-year basis, inflation was highest in Kebbi at 15.20% and lowest in Bayelsa at 9.07%.
For states, food inflation was highest in Kebbi at 17.53%, Ondo at 17.01% and Ogun at 17%. The slowest increase in the prices of food items was recorded in Kogi (12.12%), Katsina (11.18%) and Bayelsa (9.55%).
The report also noted: “Bayelsa, at -0.35%, recorded price deflation or negative inflation” which is a decrease in the general price level of food or negative food inflation.”
Analysts opine that the skyrocketing prices will have negative impact on businesses as price changes, borrowing, investment and foreign exchange continue to dwell in uncertain territory.
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