Energy cost, Naira devaluation, others push inflation rate to 15.7%
…New figure does not reflect inflationary pressures in months — CPPE
By Ariemu Ogaga
Rising cost of crude oil and devaluation of Naira have been a major factor in the recent increment in inflation, Nigerian NewsDirect investigation has revealed.
Meanwhile, an analyst has opined that even the increment did not in any way reflect the real sense of reality.
The National Bureau of Statistics (NBS), had on Tuesday said Nigerian economy recorded an inflation rate of 15.70 per cent in February 2022.
This new rate was revealed at a news conference to announce foreign trade statistics for 4th quarter 2021 and Consumer Price Index (CPI) for February 2022 by the Statistician-General of the Federation, Dr Simon Harry.
The 0.10 per cent increase was an increment on the 15. 60 per cent recorded in January, 2022.
The Statistician-General said, “The nation recorded an inflation rate of 15.70 per cent in February 2022 on a year-on-year basis, which is 0.10 per cent points higher than the 15.60 per cent recorded in January 2022.
“On month-on-month basis, Headline Index increased by 1.63 per cent in February, 2022. This was 0.16 per cent points higher than the rate recorded in January 2022.”
Other increments include the food index which rose by 17.11 per cent, recording a decrease of 4.68 per cent points in February, 2022, compared to 21.79 per cent recorded in February, 2021.
However, the rise in the food index, according to Dr. Harry, was caused by increase in prices of bread and cereals, food products such as potatoes, yam and other tubers, oils and fats and fruits.
“On month-on-month basis, the food sub-index increased by 1.87 per cent in February, 2022, an increase from 1.62 per cent recorded in January.
Meanwhile, the CEO of Centre for the Promotion of Private Enterprise (CPPE) and Former Director General Lagos Chamber of Commerce and Industry (LCCI), Dr. Muda Yusuf said the recent figure does not necessarily reflect realities when placed side by side with the inflationary pressure in recent months.
He said food prices across the country have risen far beyond the 15.7 per cent in the last one year.
Muda said the most visible solution is to address high energy cost, depreciation of Naira against US Dollar and insecurity.
According to him, “The inflation figures do not seem to reflect the intense inflationary pressures of recent months. For the basket of goods consumed by most Nigerians, prices have risen far more than 15.7 per cent over the last one year.
“To address this, we need to address the high energy cost, the depreciation of the naira, the security challenges among others.
