Food, fuels, clothing and others push inflation to 18.72%

Faster pace of growth in headline inflation manifesting in prices of bread and cereals, meat, fish, oils and fats, potatoes, yams and other tubers, wine and spirits, clothing materials and accessories pushed inflation to 18.72 percent in January 2017.

Other classes of goods which experienced fast paced price rise during the month included electricity, cooking gas, liquid and solid fuels, motor cars and maintenance, vehicle spare parts and fuels and lubricants for personal transport equipment, passenger transport by road.

Inflation figure stood at 18.55 percent in December 2016.

National Bureau of Statistics (NBS) said in a report on Wednesday that Communication and Restaurants and Hotels again recorded the slowest pace of growth in January, growing at 5.1 percent and 8.4 percent (year-on-year) respectively.

“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 percent (year-on-year) in January, up by 0.43 percent points from rate recorded in December 2016 (17.39) percent. During the month, all major food sub-indexes increased, with Soft Drinks recording the slowest pace of increase at 7.8 percent (year on year).

“Price movements recorded by All Items less farm produce or Core sub-index rose by 17.90 percent (year-on-year) in January, down by 0.20 percent points from rates recorded in December 2016 (18.10) percent.”

The report added that 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 percent respectively.

On a month-on-month basis, the Headline index increased albeit, at a slower pace in January 2017.

The index increased by 1.01 percent point in January, 0.05 percent points from 1.06 percent rate recorded in December 2016.

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; this Implies that these sub-indices are not mutually-exclusive.

The Urban index rose by 20.31 percent (year-on-year) in January from 20.12 percent recorded in December, and the Rural index increased by 17.34 percent in January from 17.20 percent in December.

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

The corresponding twelve-month year-on-year average percentage change for the urban index increased from 17.05 percent in December to 17.91 percent in January, while the corresponding rural index also increased from 14.54 percent in December to 15.18 percent in January.