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Prices of foods, energy push inflation to 12-year high at 18.72%

By on February 17, 2017

Nigeria’s inflation rate rose to 18.72 per cent in January 2017 from 18.55 per cent recorded in December 2016 over rising prices of consumable goods and energy.

A Consumer Price Index report released yesterday by the National Bureau of Statistics indicated that communication, restaurants and hotels recorded the slowest pace of price growth in January.

“The faster pace of growth in headline inflation, year on year, were 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 and passenger transport by road,” the report stated.

Analysis showed that 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 and bread and cereals.

The Food Index increased by 17.82 per cent in January, up by 0.43 percentage points from the rate recorded in December 2016,  (17.39) per cent.

“During the month, all major food sub-indexes increased, with soft drinks recording the slowest pace of increase at 7.8 per cent,” the report also stated.

Price movements recorded by Core sub-index rose by 17.90 per cent in January, down by 0.20 per cent points from rates recorded in December 2016 (18.10) per cent.

“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 per cent respectively,” the report said.

Analysis showed that the Urban index rose by 20.31 per cent (year-on-year) in January from 20.12 per cent recorded in December, and the Rural index increased by 17.34 per cent in January from 17.20 per cent in December.

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

The Composite Food Index rose by 17.82 per cent in January 2017. The rise in the index was mainly driven by increases in prices of Bread and cereals, Meat, Oil and Fats, and Fish.