Nigeria’s Inflation Up 11.4% In February | Independent Newspapers Limited
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Nigeria’s Inflation Up 11.4% In February

Posted: Mar 16, 2016 at 1:00 am   /   by   /   comments (0)

Bamidele Ogunwusi, Lagos

Annual consumer inflation rate rose 11.4 percent in February, 176 basis points higher than in January, to near three-and-a-half year high, data by National Bureau of Statistics (NBS) showed on Tuesday.

NBS data showed February inflation rate crossed the single digit range to 11.38 percent year-on-year above CBN’s target rate of 6-9 percent.

Food and core inflation stood at 11.35 percent and 11.04 percent, respectively.

According to the NBS, the fast pace of increases which led to the overall rise in the headline index was recorded across almost all major divisions which contribute to the headline index.

The headline index increased by 11.4 percent (year-on-year) in February, roughly 1.76 percent points higher from rates recorded in January (9.6 percent). The faster pace of increases which led to the overall increase in the headline index were recorded across almost all major divisions which contribute to the headline index with the exception of the restaurants and hotels division which increased at a slower pace.

After increasing at the same pace for two months, the pace of increases of food prices as recorded by the food sub-index increased at faster pace in February. The food index increased by 11.3 percent, up by 0.71 percent points from rates recorded in January.

During the month, all major food groups which contribute to the food sub-index increased at a faster pace during the month with the exception of the potatoes, yams and other tubers; and sugar, jam, honey, chocolate and confectionery groups.

The “All Items less Farm Produce” or Core sub-index, increased at a faster pace in February as imported items as well as other domestic shocks resulted in ripple effects across many divisions that contribute to the core. The index increased by 11.0 percent in February, roughly 2.2 percent points from rates recorded in January.

On a month-on-month basis, the headline index increased at a faster pace in February relative to January.

The index increased by 2.3 percent, in February, roughly 1.4 percent points from rates recorded in January, as all divisions that contribute to the index increased with the exception of the restaurants and hotels division increasing at a slower pace.

In January, both the urban and rural indices recorded marked increases.

The urban index rose by 12.3 percent (year-on-year) from 9.7 percent recorded the month earlier, and the rural index increased by 10.7 percent in February from 9.5 percent in January. On a month-on-month basis, both the urban and rural indices increased at a faster pace, as the urban index increased by 3.0 percent in February from 0.9 percent in January, while the rural index increased by 1.8 percent from 0.9 percent in January.

The percentage change in the average composite CPI for the twelve-month period ending in February 2016 over the average of the CPI for the previous twelve-month period was 9.4 percent, higher from 9.1 percent recorded in January.

The corresponding twelve-month year-on-year average percentage change for the urban index increased from 9.2 percent in January to 9.5 percent in February, while the corresponding rural index also increased from 9.0 percent in January to 9.2 percent in February.

Imported food items as well as other necessary inputs to producing key local staples such as bread continue to drive the food index higher. The food index increased by 11.3 percent (year-on-year), 0.7 percent points higher from rates recorded in January. The highest price increases were recorded in the fish, vegetables and bread and cereals groups for the second consecutive month.

On a month-on-month basis, the food sub-index increased by 1.4 percent in February, 0.45 percent points higher from rates recorded in January. All groups which contribute to the food sub-index increased at a faster pace, with the exceptions of the potatoes, yams and other tubers; sugar, jam, honey, chocolate and confectionery; and milk, eggs and cheese groups.

The average annual rate of change of the food sub-index for the twelve-month period ending in February 2016 over the previous twelve-month average was 10.2 percent, 0.2 percent points from the average annual rate of change recorded in January (10.0 percent).