Business

Prices of commodities rise as inflation rate hits record 18.72%

The Consumer Price Index, CPI, which measures the rate of inflation in Nigeria rose by 18.72 percent in January, according to figures released by the National Bureau of Statistics (NBS).

The NBS said in the CPI report for the month of January which was released last Wednesday that the 18.72 per cent inflation rate is 0.17 percentage points higher than 18.55 per cent recorded in December, 2016.

The report blamed the rise in inflation rate on increases recorded in bread and cereals, meat, fish, oils and fats, potatoes, yams and other tubers, wine and spirits, clothing materials and accessories, electricity, cooking gas, liquid and solid fuels, motor cars and maintenance, vehicle spare parts and fuels and lubricants for personal transport equipment, passenger transport by road.

The report read in part, “The Consumer Price Index (CPI) which measures inflation increased by 18.72 percent (year-on-year) in January 2017, 0.17 percentage points higher from the rate recorded in December 2016 (18.55) percent.”

The report stated that communication and Restaurants and Hotel recorded the slowest pace of growth in January, rising at 5.1 per cent and 8.4 per cent respectively.

It said the food sub index increased by 17.82 per cent year-on-year in January, up by 0.43 percentage points from the 17.39 per cent recorded in December 2016.

On a month on month basis, headline inflation was driven by passenger transport by air, fuels and lubricants for personal transport equipment, liquid fuels, cooking gas, oils and fats, fruits, Miké cheese and eggs, fish, meat, bread and cereals.

Price movements recorded by All Items less farm produce or Core sub-index rose by 17.90 percent (year on-year) in January, down by 0.20 percent points from rates recorded in December 2016 (18.10) percent.

During the month, the highest increases were seen in Housing, Water, Electricity, Gas and Other Fuels, Education and Transport growing at 27.2, 21.0 and 17.2 percent respectively.

On a month-on-month basis, the Headline index increased albeit, at a slower pace in January 2017. The index increased by 1.01 percent point in January, 0.05 percent points from 1.06 percent rate recorded in December 2016.

It should be noted that the Headline Index is made up of the Core Index and Farm Produce items. As.  Processed Foods are included in both the Core and Food sub-indices; this Implies that these sub-indices are

not mutually-exclusive.

The Urban index rose by 20.31 percent (year-on-year) in January from 20.12 percent recorded in December, and the Rural index increased by 17.34 percent in January from 17.20 percent in December.

On month-on-month basis, the urban index rose by 1.03 percent in January from 1.08 percent recorded in December, while the rural index rose by 1.00 percent in January from 1.04 percent in December.

On a month-on-month basis, the Food sub-index increased by 1.29 percent in January, down by 0.04 percent points from 1.33 percent recorded in December.

The average annual rate of change of the Food sub-index for the twelve-month period ending in January 2017 over the previous twelve-month average was 15.54 percent, 0.59 percent points from the average annual rate of change recorded in December(14.95 percent).

Aside Farm Produce, all other items which excludes the prices of volatile agricultural produce eased by 17.9 percent during the month, 0.20 percent points from 18.1 percent recorded in December as all key divisions which contributes to the index increased.

On a month-on-month basis, the Core sub-index increased by 0.68 percent in January, 0.06 percent points higher from 0.62 percent recorded in December. The highest increases were recorded in electricity, gas, passenger transport by air, liquid fuel, fuel and lubricants for personal transport equipment and solid fuels.

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