Food prices accelerates as Nigeria’s September inflation crashes to 15.98%

Food prices accelerates as Nigeria’s September inflation crashes to 15.98%

Latest data from Nigeria’s data office said September inflation fell to 15.98% on a year on year basis while food sub-index rose to 20.32% in September, compared with 20.25% in August.

On a month on month basis, the data showed a slight slowdown from 16.01% disclosed in August.

The Urban index rose by 16.18 percent (year-on-year) in September2017, up by 0.05 percent point from 16.13 percent recorded in August and the Rural index increased by 15.81 percent in September down from 15.91 percent in August.

On month-on-month basis, the urban index rose by 0.84 percent in September 2017, down from 0.99 percent recorded in August, while the rural index rose by 0.74 percent in September 2017, down from 0.95 percent in August.

The corresponding twelve-month year-on-year average percentage change for the urban index decreased from 18.15 percent in August to 17.87 percent in September, while the corresponding rural inflation rate in September was 16.52 percent compared to 16.58 percent recorded in August 2017.

Nigeria’s economy managed to walk out of its worst recession in over 20 years after global crude oil prices crashed by more than 70%. Revenue shortages which almost paralysed governance at the centre and state government levels have increased leverage and other borrowing programmes.

Yesterday, the World Bank through its spokesperson said Nigeria’s borrowing programme might not be sustainable given the country’s dwindling revenue. While oil prices are now trading at half the price of what it traded three years ago, shale oil producers might increase output in the international markets despite recent spikes in prices as a result of President Trump’s likelihood of cancelling the Iran Nuclear Deal.