As we stand six (6) weeks away from the festive season of Christmas, it is eminent that the prices of goods and services are expected to be higher in December 2020 than in 2019. Rising prices, known as inflation, either positively or negatively impact the cost of living, the cost of doing business, borrowing money, mortgages, corporate and government bond yields, and every other economic facet. When prices for energy, food, commodities, and other goods and services rise, the entire economy is affected. When inflation becomes too high, the economy suffers; conversely, if inflation is controlled and at reasonable levels, the economy may prosper. With controlled lower inflation, employment increases, and consumers would have more money to buy goods and services, and the economy would benefit and grow.

According to Nairametrics, the Consumer Price Index report released by the National Bureau of Statistics on Monday, the Inflation rate for October 2020 increased to 14.23% (year on year). This is 0.52% higher than the inflation rate of 13.71% recorded in September 2020.  The inflation rate for 2017, 2018, and 2019 was 16.52%, 12.09%, and 11.40% respectively. This shows a constant decrease from 2017; however, Nigeria would end the year with an increase in 2020.

Referencing the report on food inflation, the Composite Food Index rose by 17.38 percent in October 2020 compared to 16.66%  in September 2020. This rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam, and other tubers, meat, fish, fruits, vegetables, alcoholic and food beverages, and oils and fats. On a month-on-month basis, the food sub-index increased by 1.96% in October 2020, up by 0.08 % points from 1.88% recorded in September 2020. According to the bureau, in October 2020, food inflation on year on year basis was highest in Edo (23%), Zamfara (21%), and Kogi (20.6%), while Lagos (15%), Ogun (14.5%) and Ondo (14.2%) recorded the slowest rise.