With heightening stomach grumblings and absence of ‘stomach infrastructure’ Nigerians are not hopeful and as such not holding their breadth even as September 2021 inflation numbers suggest that the domestic consumer price index (CPI) has risen at a slower pace.
The headline inflation number released by the nation’s Bureau agency (NBS) shows that inflation for the month of September settled at 16.3 percent, 0.38 per cent points lower than the 17.01 percent rate recorded in August.
The new headline inflation figure took analysts by surprise as most of them expected the number to reverse the decline between March and April 2021 based on concerns over slow domestic supply chain recoveries and persistent security concerns in the countrys farm belts of Plateau, Benue and Taraba states.
The troubles of the food production belt has seen a steady month-on-month increase in the cost of food and a reduction in consumers’ real disposable incomes.
Our survey showed that paint rubber of beans is selling for N4000, almost same for rice and a tuber of yam, depending on the size goes between N800 and N1600.
Other prices of other staples and even meat have hone up, yet we are reporting decelerating inflation figures to the world.
In fact September figures is the sixth consecutive monthly decline and an eight-month low.
The principal inflation moderating factor is the base year effects. A notable trend however is that core inflation (inflation less seasonalities) increased by 0.33% to 13.74% and month-on-month inflation rose by 0.13% to 1.15% (14.77% annualized).
This points to the fact that the threat of inflation rising again is potent.
Bismarck Rewane, chief executive of the Financial Derivatives Company in the October 15, Economic Bulletin expressed the same sentiment.
Another analyst who pleaded for anonymity said:
“Except if Nigeria has coined another meaning for inflation other than what we know, of too much money chasing few goods.“
