Wednesday, 15 March 2017

Inflation rate drops to 17.78, lowest in 15 months

Inflation rate in Nigeria fell to 17.78 percent in February from 18.72 percent in January, a new report by the National Bureau of Statistics (NBS) on Tuesday revealed.
Nigeria Inflation rate drops

The decline was the lowest in the past 15 months.

"This represents the first time in 15 months that the headline CPI (Consumer Price Index) has declined on year on year basis representing the effects of slower rises in already high food and
non-food prices and favourable base effects over 2016 prices,” NBS said in its report.

NBS reports on a month-on-month basis, the headline index increased by 1.49 percent in February 2017, 0.48 percent points higher from the rate of 1.01 percent recorded in January.

NBS attributed the drop in inflation rate to a slower rise in general price levels.

However, a separate food index on the NBS report showed inflation at 18.53 percent from 17.82 percent in January. It attributed the push-up to the rise in food staples such as bread, cereal and meat, while drink prices slowed.

"The Food Index increased by 18.53 percent (year-on-year) in February, up by 0.71 percent points from rate recorded in January (17.82) percent driven by increases in the prices of bread, cereals, meat, fish, potatoes, yams and other tubers and wine, while the slowest increase in food prices year on year were recorded by soft drinks, coffee, tea and cocoa.

"Price movements recorded by All Items less farm produce or Core sub, 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.

“Index rose by 16.00 percent (year on-year) in February, down by 1.90 percent points from rate recorded in January (17.90) percent,” the report said.

During the month, the highest year on year increases were seen in electricity, liquid and solid fuels, fuels and lubricants for personal transport equipment, clothing materials, other articles of clothing and clothing accessories and book and stationaries.

"The Urban Index rose by 18.57 percent (year-on-year) in February from 20.31 percent recorded in January, and the Rural Index increased by 16.98 percent in February from 17.34 percent in January.

"On month-on-month basis, the urban index rose by 1.52 percent in February from 1.03 percent recorded in January, while the rural index rose by 1.47 percent in February from 1.00 percent in January.

"The corresponding twelve-month year-on-year average percentage change for the urban index increased from 17.91 percent in January to 18.42 percent in February, while the corresponding rural index also increased from 15.18 percent in January to 15.70 percent in February."

Nigeria’s economy has been grappling with recession, currency crisis and dollar shortages, occasioned by low oil price.

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