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Inflation Drops to 11.9% in February, Food Inflation Rises

By on March 20, 2012

Information recently released by the National Bureau of Statistics (NBS) indicate that inflation fell in the month of February. The Consumer Price Index (CPI) was recorded at 11.9% as against 12.6% recorded in January.

The partial removal of the fuel subsidy has reflected in food prices as Food related inflation increased from the levels seen in January.

According to the NBS report, “The increase in the headline index, composed of the core and food indices, was due to the partial petrol subsidy removal that pushed up prices of many food and non‐food items including transport fares. The cost of transportation of food to markets which is merely a part of the transportation category in the CPI also increased and thus revealed the impact of the partial removal of the subsidy on food prices.

“Compared with January 2012 figure, average monthly food prices rose in February 2012 by 2.8 percent. The rise in the food inflation was mainly due to the increasing cost of cereals, yam, other tubers, cooking oil, meat, fruit, vegetables and beverages.”