Oct 19 (Lagos) - Inflation continued its upward trajectory last month according to figures released by the National Bureau of Statistics. Food inflation expanded to 23.34% from 23.12% recorded in August 2022 while core inflation, which strips out the cost of food and energy, quickened to 17.60% in September, compared with 17.20% in August 2022.
- On a monthly basis, the headline index grew by 1.36% in September (vs 1.77% in August)
- The core index grew by 1.59% M-o-M in September, while the food sub-index also grew at a slower pace of 1.43% M-o-M compared to 1.98% in August.
- The urban inflation rate increased to 21.25% Y-o-Y (vs 20.95% Y-o-Y in August 2022).
- The rural inflation rate advanced to 20.32% Y-o-Y (vs 20.12% Y-o-Y in August 2022).
While the CBN has started raising its key benchmark lending rate, it is still sharply below the inflation rate. It is scary to think just how far behind the CBN really is in its approach towards controlling inflation. Past CBN Governors used to use interest rates but the current governor is reluctant to do so as it could derail growth companies. At some point CBN will have to accept that it is currently losing the battle against inflation with food inflation approaching a whopping 25% mark. CBN must realize that with that kind of inflation in food items, it could create social unrest like how we witnessed in 2020 end sars protests.
reporting for easykobo.com on Wednesday, October 19 2022 from Lagos, Nigeria