Consumer Price Index and Inflation Report for September

Inflation makes the wealthiest people richer and the masses poorer.

James Cook 

Why are all these figures important and why should you pay closer attention to them?

The answer is simple as suggested by the quote above, credited to James Cook.  Inflation is the reason why some are rich and getting richer with every increase in the figures and others are poor and getting poor.  How does that happen?  Venita VanCaspel answered perfectly:

Inflation takes from the ignorant and gives to the well informed.

So it is in your best interest to seek knowledge. Now let’s see the 

Consumer Price Index And Inflation Report For September 2022

CPI and Inflation Report September 2022 released by the National Bureau of Statistics in October shows a new surge in the inflation rate to 20.77 from 20.52 in August of the same year. 

In September 2022, on a year–on–year basis, the headline inflation rate was 20.77%. This was 4.14% points higher compared to the rate recorded in September 2021, which was (16.63%). This indicates that in September 2022, the general price level was 4.14% higher relative to September 2021.

On a month-on-month basis, the Headline inflation rate in September 2022 was 1.36%, this was 0.41% lower than the rate recorded in August 2022 (1.77%). This means that in September 2022, the headline inflation rate (month–on–month basis) declined by 0.41%, relative to August 2022.

The percentage change in the average CPI for the twelve months ending September 2022 over the average of the CPI for the previous twelve-month period was 17.43%, showing a 0.60% increase compared to the 16.83% recorded in September 2021.

See August Report: Why Nigerian Food Crisis May Worsen As Inflation soar To Nears Two-decade High At 20.52% In August 2022

What Is CPI

The Consumer Price Index CPI measures the average change over time in the prices of goods and services consumed by people for day-to-day living.  That is to say that CPI is interested in how much you bought a loaf of bread by this time last year and how much the same loaf is being sold at the time of the report. The construction of the CPI combines economic theory, sampling, and other statistical techniques using data from other surveys to produce a weighted measure of average price changes in the Nigerian economy. The weighting occurs to capture the importance of the selected commodities in the entire index. The production of the CPI requires the skills of economists, statisticians, computer scientists, and data collectors, among other professionals.

The CPI surveys all items in both the urban and rural sectors for each of the 36 states and the FCT and grouped into 12 Divisions to include:

1. Food and non-alcoholic beverages
2. Alcoholic beverages, tobacco, and kola
3. Clothing and footwear
4. Housing, water, electricity, and gas
5. Furniture and household equipment
6. Health
7. Transport
8. Communication
9. Recreation and Culture
10. Education
11. Restaurants and hotels
12. Miscellaneous goods and services

To cover:

• The Country Composite Index
• The Urban National Index
• The Rural National Index
• The Combined Urban and Rural State Composite Index

 Urban Inflation

On a year-on-year basis, in September 2022, the urban inflation rate was 21.25 %, which was 4.06% higher compared to the 17.19% recorded in September 2021. On a month-on-month basis, the urban inflation rate was 1.46% in September 2022, this was a 0.34% decline compared to August 2022 (1.79%). The corresponding twelve-month average for the urban inflation rate was 17.94% in September 2022. This was 0.53% higher compared to the 17.41% reported in September 2021.

Rural Inflation

The rural inflation rate in September 2022 was 20.32% on a year-on-year basis; this was 4.24% higher compared to 16.08% recorded in September 2021. On a month-on-month basis, the rural inflation rate in September 2022 was 1.27%, down by 0.48% compared to August 2022 (1.75%). The corresponding twelve-month average for the rural inflation rate in September 2022 was 16.94%. This was 0.68% higher compared to the 16.26% recorded in September 2021

 Food Inflation

In September 2022, all items inflation rate on a year-on-year basis was highest in Kogi (23.82%), Rivers (23.49%), Benue (22.78%), while Abuja (17.87%), Borno (18.12%), and Adamawa (18.42%) recorded the slowest rise in headline Year-on-Year inflation.

On a month-on-month basis, however, September 2022 food inflation was highest in Enugu (2.61%), Ogun (2.50%), and Oyo (2.43%), while Sokoto (-0.88%), Ondo (0.38%) and Niger (0.62%) recorded the slowest rise on month-on-month inflation.

All Items Inflation

In September 2022, all items inflation rate on a year-on-year basis was highest in Kogi (23.82%), Rivers (23.49%), Benue (22.78%), while Abuja (17.87%), Borno (18.12%), and Adamawa (18.42%) recorded the slowest rise in headline Year-on-Year inflation.

On a month-on-month basis, however, September 2022 recorded the highest increases in Jigawa (2.58%), Yobe (2.22%), Benue (2.05%), while Abuja (-0.72%), Sokoto (-0.19%) and Adamawa (0.25%) recorded the slowest rise on month-on-month inflation.

Information was soured from NBS's officially released report

 

 Also, Read The Global Economic Outlook For 2023

Inflation and Uncertainty Hits Harder as IMF Warns Of Global Economic Growth Contraction In 2023

The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.

Ernest Hemingway

As we bring this section to a close, I want you to take the advice of Ludwig von Mises seriously and be part of the decision in choosing who rules your country. do not leave that one important decision to the politicians and card-carrying members of political parties because the inflation we are seeing today is the result of their policies.

The most important thing to remember is that inflation is not an act of God, that inflation is not a catastrophe of the elements or a disease that comes like the plague. Inflation is a policy.

Ludwig von Mises

 Do a kind act, and leave us feedback in the comment box so we know how we are getting across to you.  Stay blessed and be on the right side of the inflation!