Inflation climbs to 17.9% in September

  • 19.5% in urban areas, 16.4% in rural areasAmidst global uproar over a public spousal spat between President Muhammadu Buhari and Hadjia Aisha, the economy continues its downward spiral with inflation continuing its upward movement, reaching 17.9 percent in September.

During the month, the highest increases were seen in the electricity, liquid fuel (kerosene), solid fuels, and fuels and lubricants for personal transport equipment groups.

National Bureau of Statistics (NBS) said in its September 2016 Consumer Price Index (CPI) newsletter that inflation increased by 17.9 percent (year-on-year), 0.24 percentage points higher than the rate recorded in August 2016 at 17.6 percent.

The agency noted that increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions, which contribute to the headline index.

“Communication and restaurants and hotels recorded the lowest rates of increase of the 12 divisions, growing by 5.6 percent and 9.6 percent respectively”, adding “the food sub index increased by 16.6 percent (year-on-year) in September, up by 0.19 percent points from rate recorded in August (16.4 percent).”

Nonetheless, commodities like fish, oils and fats, and fruits recorded lowering prices.

Price movements recorded by the all Items less farm produce or core sub-index increased by 17.7 percent (year-on-year) in September, up by 0.5 percent points from rates recorded in August (17.2 percent).

During the month, the highest increases were seen in clothing materials, other articles of clothing and clothing accessories, garments, shoes and other footwear, books and stationeries, jewelry, clocks and watches, and motorcycles.

Energy and energy related prices continue to be the largest increases reflected in the Core sub-index. In September, the core sub-index increased by 17.7 percent during the month, up by 0.5 percent points from rates recorded in August (17.2%).

It should be noted that the headline index is made up of the core index and farm produce items.  Processed foods are included in both the core and food sub-indices, implying that these sub-indices are not mutually-exclusive.

On a month-on-month basis, the headline index eased, increasing by 0.8 percent in September, down from 1.0 percent in August.

The urban index rose by 19.5 percent (year-on-year) in September from 19.3 percent recorded in August and the rural Index increased by 16.4 percent in September from 16.1 percent in August.

On a month on month basis, both the urban and rural index eased, increasing by 0.8 percent a piece.

The percentage change in the average composite CPI for the twelve-month period ending in September 2016 over the average of the CPI for the previous twelvemonth period was 13.5 percent, higher from 12.7 percent recorded in August.

The corresponding twelve-month year-on-year average percentage change for the urban index increased from 13.6 percent in August to 14.4 percent in September, while the corresponding rural index also increased from 12.0 percent in August to 12.6 percent in September.

Noting that composite food index rose by 16.6 percent in September, NBS observed “the rise in the index was caused by increase in prices of meat, bread and cereals and oil and fats.”