14 March 2017

Nigeria: Finally, Nigeria Inflation Rate Drops - - the First Time in 15 Months

Photo: The Guardian

The Consumer Price Index, CPI, which measures inflation dropped to 17.78 percent (year-on-year) in February 2017, the National Bureau of Statistics, NBS, has said.

A report released by the bureau on Tuesday said the figure represents 0.94 percent points lower from the 18.72 percent recorded in January.

It is the first time in 15 months that the headline CPI has declined on a year on year basis.

This, the report notes, represents the effects of slower rises in food and non food prices and favourable base effects over 2016 prices.

The report however showed that price increases were recorded in all divisions that yield the Headline Index.

The major divisions responsible for accelerating the pace of the increase in the headline index were housing, water, electricity, gas and other fuel, education, food and alcoholic beverages, clothing and footware and transportation services.

A breakdown of the report shows that on a month-on-month basis, the headline index increased by 1.49 percent in February 2017, 0.48 per cent points higher from the rate of 1.01 percent recorded in January.

Also, 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).

This rise, the report shows, was 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-index rose by 16.00 percent (year-on-year) in February, down by 1.90 per cent points from 17.90 percent recorded in January.

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 stationeries.

Further breakdown shows that 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.

Also, 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.

Meanwhile, the Composite Food Index rose by 18.53 percent in February 2017. The rise in the index was driven by increases in the prices of bread, cereals, meat, fish, potatoes, yams and other tubers, vegetables, wine, milk, cheese and eggs, Sugar, jam, honey, chocolate and confectionery and fruit.

On a month-on-month basis, the Food sub-index increased by 1.99 per cent in February, up by 0.7 percent points from 1.29 per cent recorded in January.

The "All Items Less Farm Produce" or Core sub-index, which excludes the prices of volatile agricultural produce declined by 16.0 percent in February 2017, 1.90 percent points from 17.90 percent recorded in January.

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