Sunday, January 29, 2023
  • Login
No Result
View All Result
The News Beam
  • Home
  • News
    • Politics
    • Business & Economy
    • Sports
    • Entertainment
    • Global
  • Development
    • Health
    • Education
    • MGDs
    • Development Agencies
  • Your Community
    • CDAs
    • LGAs
    • Projects
    • Community Champions
  • The Entrepreneur
    • Street Money
    • SMEs
    • Youthprenuers
    • Agriprenuers
    • Capacity Building
  • Specials
    • Lifestyle
    • Relationships
    • Books & Arts
    • Faith
    • Teens World
    • Guest Columnists
The News Beam
  • Home
  • News
    • Politics
    • Business & Economy
    • Sports
    • Entertainment
    • Global
  • Development
    • Health
    • Education
    • MGDs
    • Development Agencies
  • Your Community
    • CDAs
    • LGAs
    • Projects
    • Community Champions
  • The Entrepreneur
    • Street Money
    • SMEs
    • Youthprenuers
    • Agriprenuers
    • Capacity Building
  • Specials
    • Lifestyle
    • Relationships
    • Books & Arts
    • Faith
    • Teens World
    • Guest Columnists
No Result
View All Result
The News Beam
Home News Business & Economy

Why You Should Be Bothered That Nigeria’s Inflation Rate Has Skyrocketed

November 17, 2020
in Business & Economy, Economy, Finance, Uncategorized
Reading Time: 3 mins read
0
A A
0
Inflation
Share on FacebookShare on Twitter
The consumer price index, (CPI) released by the National Bureau of Statistics (NBS) yesterday, revealed that Nigeria’s inflation hit an all-time high of 14.23 per cent in October, 2020 (year-on-year). This is 0.52 percent points higher than the rate recorded in September 2020 which is 13.71 per cent.

According to the report, the states with the highest inflation rate are Zamfara State (with a 17.69% increase), Sokoto State (17%), Ebonyi (16.91%), Bauchi (16.73%), and Plateau State (16.69%). While states with low measures includes Cross River (11.5%), followed by the federal capital, Abuja (11.84%), Lagos (11.95%), Ondo (12.33%) and Kwara State (12.5%).

The composite food index also rose by 17.38 percent in October 2020 compared to 16.66 percent in September 2020. This is said to be caused by rise in prices of Bread and cereals, Potatoes, Yam and other tubers, Meat, Fish, Fruits, Vegetable, alcoholic and food beverages and Oils and Fats.

The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 11.14 percent in October 2020, up by 0.56 percent when compared with 10.58 percent recorded in September 2020.

The highest increases were recorded in prices of Passenger transport by air, Hospital and Medical services, Passenger transport by road, Pharmaceutical products, Motor cars, Vehicle spare parts, Maintenance and repair of personal transport equipment, Hairdressing salons and personal grooming establishments, Miscellaneous services relating to the dwelling, Paramedical services and shoes and other footwear.

What does all of this mean?

Nigerian inflation has accelerated for a 14th straight month in October and the rise was the highest inflation rate since February of 2018

A rise in the inflation rate means prices are rising at a faster rate. This indicates a persistent decrease in the purchasing power of consumers. Inflation is always a destroyer of economies.

It has strict consequences on producers, consumers, and Nigerians generally.

SME owners are always on the receiving end of high inflation. If you are an Entrepreneur or you run a business, there is a high probability that you will be unable to sustain operations when prices skyrockets. For instance, prices of energy and raw materials may be beyond reach. Ultimately, prior investments in fixed assets are turned into sunk costs.

Civil servants and salary earners are also not left out. Their wages are not increased with the persistent increases in prices. They, therefore, will have to suffer higher cost of living.

Central bank will most likely increase interest rates to moderate the inflation rate and this will cause greater uncertainty amongst business. It might lead to lower investment.

Inflation may also cause a depreciation in the exchange rate.

Basically, the poverty level in Nigeria will accelerate since rising inflation shows low purchasing power when there is no compensatory adjustment in incomes of households or salaries of workers.

This becomes a worry especially at a time when the Nigerian economy is on the verge of another recession, characterized by increases in price of major food items (due border closure, attacks on farmers in some states) and rise in service fees.

READ ALSO: Here is Why SME Owners Should be Excited About AFCFTA?

ShareTweetSend
Previous Post

PDP Mocks APC Over Engagement in Up-Coming Cross River Senatorial Bye-Election

Next Post

Super Eagles, Rohr and Calculator.

Related Posts

Inflation in December 2022
News

What you need to know: December inflation rate at   21.34%

January 16, 2023
18
Business Risks Forecasts
Business & Economy

How to Protect Your Business from Top Risks in 2023

November 15, 2022
50
Sex: Ladies share virginity challenges
Relationships

Sex: Ladies share virginity challenges

November 12, 2022
134
eNaira: CBN lists 7 benefits to Nigerians, economy
Business & Economy

eNaira: CBN lists 7 benefits to Nigerians, economy

November 10, 2022
25
NDIC Logo
Business & Economy

NDIC To Bank Customers: “Come and Collect Your Remaining Funds in 20 Closed Banks”

November 8, 2022
11
CBN Head Office
Business & Economy

CBN to withdraw 200, 500 and 1000 bank notes from January 2023. Circulate New Notes From December 2022

October 26, 2022
287
Next Post
Super Eagles, Rohr and Calculator.

Super Eagles, Rohr and Calculator.

CNN Lekki Shooting

Lekki Shooting: CNN Releases Evidences To Refute Nigerian Army Claims

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

  • Trending
  • Comments
  • Latest
How to Apply for the N25 Billion Youth Investment Fund of the Federal Govt

How to Apply for the N25 Billion Youth Investment Fund of the Federal Govt

October 16, 2020
Covid-19: See List of Vaccination Centers in Lagos State

Covid-19: See List of Vaccination Centers in Lagos State

August 19, 2021
Banks suffer 11% reduction in new loans as customers resist interest rate hike

CBN reveals 9 Business Categories that recorded Increased Activity This Month

9
BREAKING ! How Hurriedly installed Application Saved Central Bank of Nigeria website from 'Anonymous' hack

BREAKING ! How Hurriedly installed Application Saved Central Bank of Nigeria website from ‘Anonymous’ hack

7
Inflation in December 2022

What you need to know: December inflation rate at   21.34%

January 16, 2023
Business Risks Forecasts

How to Protect Your Business from Top Risks in 2023

November 15, 2022

Categories

  • Agriprenuers (12)
  • Books & Arts (7)
  • Business & Economy (434)
  • Capacity Building (25)
  • CDAs (2)
  • Community Champions (1)
  • Crime (196)
  • DEVELOPMENT (74)
  • Development Agencies (109)
  • Economy (317)
  • Education (192)
  • Entertainment (405)
  • Faith (55)
  • Finance (335)
  • Global (103)
  • Guest Columnists (17)
  • Health (56)
  • Health (242)
  • Industry (149)
  • LGAs (1)
  • Lifestyle (98)
  • MGDs (10)
  • News (2,292)
  • Politics (373)
  • Projects (2)
  • Relationships (70)
  • Security (164)
  • SMEs (15)
  • SPECIALS (87)
  • Sports (311)
  • Street Money (9)
  • Tech (138)
  • Teens World (3)
  • The Entrepreneur (26)
  • Uncategorized (70)
  • Your Community (33)
  • Youthprenuers (14)
No Result
View All Result
News
Politics
Business & Economy
Sports
Entertainment
Global

Development

Health
Education
MGDs
Development Agencies

Your Community

CDAs
LGAs
Projects
Community Champions

The Entrepreneur

Street Money
SMEs
Youthprenuers
Agriprenuers
Capacity Building

Specials

Lifestyle
Relationships
Books & Arts
Faith
Teens World
Guest Columnists

Follow Us

  • About Us
  • Contact Us
  • Terms of Usage
  • Privacy Policy
  • Advert Rates
  • Newsletters
  • Resources
  • Submit a Story
No Result
View All Result
  • Home
  • News
    • Politics
    • Business & Economy
    • Sports
    • Entertainment
    • Global
  • Development
    • Health
    • Education
    • MGDs
    • Development Agencies
  • Your Community
    • CDAs
    • LGAs
    • Projects
    • Community Champions
  • The Entrepreneur
    • Street Money
    • SMEs
    • Youthprenuers
    • Agriprenuers
    • Capacity Building
  • Specials
    • Lifestyle
    • Relationships
    • Books & Arts
    • Faith
    • Teens World
    • Guest Columnists
  • Login

© 2020 The News Beam is the highest circulated and most read newspaper in Nigeria. The online portal of The News Beam is the most visited website in the world.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.

Subscribe With The News Beam