Nigeria’s annual inflation rate increased for the first time in eight months following a protracted period of decline.
The National Bureau of Statistics reported Monday that inflation jumped to 15.63 percent in December 2021, up from 15.40 percent in November.
The Consumer Price Index, which measures the cost of goods and services, grew by 15.63 percent in December 2021 compared to December 2020, according to the statistics office.
“This is 0.13 percentage points lower than the rate of 15.75 percent recorded in December 2020,” it stated.
“When compared to the same period in 2020, this shows a slowing down in the rate.
However, when comparing the rate to the previous months’ year-over-year performance, the rate has risen.
In December 2021, the headline index increased by 1.82 percent when comparing the pace of price change between December and November (month-on-month). The figure for November was 1.08 percent.
What is the inflation rate for 2021?
The United States’ annual inflation rate has risen from 3.2 percent in 2011 to 4.7 percent in 2021. This suggests that the dollar’s purchasing power has deteriorated in recent years.
In September 2021, what will the inflation rate be?
In September 2021, the UK’s inflation rate, as measured by the CPI, was 3.1 percent. The following are the inflation measures for the year ending September 2021: In September 2021 (Index: 112.4), CPIH inflation was 2.9 percent, down from 3.0 percent in August 2021.
In October 2021, what is the current inflation rate?
Americans who have just gone to the grocery store or begun their holiday shopping may have noticed a rise in consumer costs. According to the Consumer Price Index, the annual rate of inflation in the United States reached 6.2 percent in October 2021, the highest in more than three decades (CPI). Other inflation indicators have also increased significantly in recent months, though not to the same amount as the CPI.
Understanding why inflation has risen so swiftly should help policymakers figure out how long the spike will stay and what, if anything, they should do about it. The recent increase in inflation looks to be fundamentally different from previous bouts of inflation that were more directly linked to the regular business cycle. Continued disruptions in global supply chains due to the coronavirus pandemic; labor market turmoil; the fact that today’s prices are being compared to prices during last year’s COVID-19-induced shutdowns; and strong consumer demand after local economies were reopened are some of the explanations offered so far.
Is the rate of inflation monthly or yearly?
Inflation is commonly reported as an annual figure, with annual increases in the cost of commodities ranging from 1% to 4%. There isn’t a single day during the year when prices suddenly rise. Inflation, on the other hand, is a slow and steady process that occurs throughout the year. As a result, inflation can be shown as a monthly number. You may either use the raw data to calculate the actual inflation for each particular month or calculate the average monthly inflation for a year based on the yearly inflation.
What exactly is inflation?
Inflation is defined as the rate at which prices rise over time. Inflation is usually defined as a wide measure of price increases or increases in the cost of living in a country.
What will the CPI be in September 2021?
CPI inflation declined to 3.1 percent from 3.2 percent in the previous month. Inflation was predicted to fall due to a -0.4 percent “base effect” as the August-September 2020 inflation surge faded away (this spike of 0.4 percent was partly due to the rebound from the Eat Out to Help Out and VAT cut in August 2020). However, there was a significant element of additional inflation in addition to the base impact, with prices rising by 0.3 percent between September and August. This came after a significant increase of 0.7 percent in July-August.
The results were varied across sectors, with transportation and food showing rises and restaurants and hotels and clothing and footwear showing decreases.
When we take into account the reversal of VAT reductions in the hospitality sector, as well as the scheduled and expected future spikes in household energy prices indicated by OFGEM, we predict inflation to climb substantially in late 2021 and early 2022.
Inflation peaks at 4.7-5.3 percent in the first quarter of 2022, then drops to around 3.5 percent by September.
Because the September figure was slightly higher than projected, and we have built in a projection for the likely increase in the OFGEM price cap in April 2022, this peak is higher than we predicted last month.
- In September 2021, the CPI inflation rate was 3.1 percent, down from 3.2 percent in August. Part of the reason for this dip was the removal of 0.4 percent of old m/m inflation (August-September 2020) “o as a “foundation impact” Between August and September 2021, there was additional fresh inflation of 0.3 percent, which is high but not rare.
- The new monthly inflation figure of 0.3 percent for August-September comes after four months of high monthly inflation of 0.5-0.7 percent. The average monthly inflation rate from March to September was 0.45 percent, which is substantially above normal and would translate into an annual inflation rate of about 5.6 percent if sustained over a year.
- The consequences of the increase in the OFGEM price ceiling and increase in VAT on hospitality will be reflected in October’s pricing, resulting in a 1% or more increase in headline inflation. The impact of the 7.5 percent VAT hike on hospitality will be determined by how much the businesses pass on to customers, although it may be as much as 0.7 percent. With an increase of roughly 0.4 percent, the OFGEM increase is more predictable. Because the base effect for October is 0% (prices were unchanged from September to October 2020), the entire increase in inflation in October 2021 will be due to the base effect “In September-October 2021, the “new” inflation will begin.
- The primary contributions to the shift in inflation in August-September, when looking at different types of expenditure, were:
The sum of monthly inflation “dropping in” and “dropping out” for the type of expenditure multiplied by the weight of the expenditure type in the CPI index is used to calculate the contribution of each type of expenditure. The current month’s fresh inflation is reflected in the dropping in, while the inflation from August to September 2020 is reflected in the dropping out.
The decreasing in shaded light brown and the dropping out shaded light blue for the twelve COICOP expenditure categories used in CPI are shown in Figure 1, with the total given by the burgundy Line. The falling in and out reinforced each other in both Restaurants & Hotels and Recreation & Culture, but the dropping out of the rebound from EOHO was clearly overwhelming. The new and old inflation acted in opposite directions in Clothing & Footwear, but overall there was a modest decrease. Despite the fact that new inflation is negative, food and non-alcoholic beverages showed an increase overall. In the case of transportation, it was a similar pattern, with an overall gain caused by old inflation fading despite negative new inflation.
While the aggregate contribution of 10 of the 12 different types of expenditure was positive, the dropping in and dropping out operated in opposing directions in all situations except Restaurants and Hotels. The second exception was Education, which remained constant in all months except September and stepped in to contribute a very small 0.01 percent yearly contribution to inflation.
The prices of over 700 different goods and services sampled by the ONS show a wide range of behavior.
Some increase in value each month, while others decrease. Looking at the extremes, the top 10 items with the highest monthly inflation for this month are:
Table 2 shows the “Bottom Ten” items with the biggest negative inflation this month.
In both of these figures, we look at how much the item price-index for this month has risen in percentage terms since the previous month. Yang Li, a PhD student at Cardiff University, performed these computations.
We can look forward over the next 12 months to observe how inflation might change as recent inflation “drops out” month by month. Each month, fresh inflation is added to the annual number, while old inflation from the previous year’s same month “drops out.”
- The “middle” scenario implies that monthly inflation is equal to what would give us 2% per year 0.17 percent per month (the Bank of England’s aim and the long-run average over the last 25 years).
- The “high” scenario implies that monthly inflation is equal to 3% per year (0.25 percent pcm)
- The “very high” scenario – equivalent to 6% per year (0.4 percent pcm). This represents either the UK’s inflationary experience from 1988 to 1992 (when mean inflation was 0.45%) or recent US experience. It also represents the continuation of the current UKaverage in the UK over the months of March to September. This amount of high inflation would imply a substantial departure from inflation’s historical pattern from 1993 to 2020, as well as the Bank of England’s failure to control inflation.
Is inflation expected to rise in 2021?
According to Labor Department data released Wednesday, the consumer price index increased by 7% in 2021, the highest 12-month gain since June 1982. The closely watched inflation indicator increased by 0.5 percent in November, beating expectations.
In 2021, which country will have the highest inflation rate?
Japan has the lowest inflation rate of the major developed and emerging economies in November 2021, at 0.6 percent (compared to the same month of the previous year). On the other end of the scale, Brazil had the highest inflation rate in the same month, at 10.06 percent.