- Inflation rose to 13.7% in Q3’20
- Food prices rose to 16.7% in Q3’20
- Non-food components Inflation rose to 10.6% in Q3’20
The Central Bank of Nigeria (CBN) has reported that the level of insecurity, as well as, economic and natural disasters have contributed to the hike in prices of food and non-food commodities across the nation in the third quarter of 2020 (Q3’20).
This is a highlight of the nation’s economic report published by the Apex bank in the Economic Report for Q3’20.
The report shows that in Q3’20, Nigeria’s total inflation increased to 13.7% from 12.6% and 11.2% in Q2’2020 and Q3’19 respectively.
The rise in the prices of food, non-food components, and the unfavourable economic environment which is caused by banditry, kidnapping, and terrorist attacks led to the rise in the headline inflation.
“The rise in headline inflation was driven by food and non-food components. Other factors that drove the increase included: the increase in pump price of PMS, higher transportation/logistics cost, persistent insecurity conditions in some parts of the country, as well as farm flooding.” The report shows.
Also, food inflation rose by 1.5% in Q3’20 as it stood at 16.7% in the third quarter 2020 rising from 15.2% QoQ. This high inflation was influenced by the prices of bread and cereals, potatoes, yam and other tubers, meat, fish, fruits, oils and fats, and vegetables.
Similarly, the components of the non-food products and services witness an upward inflation to 10.6% from 10.1% recorded in Q2’20.
The non-food products and services that recorded high inflation rate in Q3’20 include passenger air transport, hospital services, medical services, pharmaceutical products, maintenance and repair of personal transport equipment, vehicle spare parts, motor cars, passenger transport by road and housing utilities (water, electricity and gas).
