Inflation fails to climb first time in 15 month

For the first time in 15 months, Consumer Price Index (CPI), which measures Nigeria’s inflation dropped to 17.78 percent on a year on year basis in February 2017.

A report released by the National Bureau of Statistics (NBS), on Tuesday said the figure was 0.94 percent points lower from the 18.72 percent recorded in January.

It was as the results of slower rises in food and non-food prices and favourable base effects over 2016 prices although 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 footwear and transportation services.

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

Also, the Food Index increased by 18.53 per cent (year-on-year) in February, up by 0.71 per cent points from rate recorded in January (17.82 per cent).

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 per cent (year-on-year) in February, down by 1.90 per cent points from 17.90 per cent 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 per cent (year-on-year) in February from 20.31 per cent recorded in January, and the Rural index increased by 16.98 per cent in February from 17.34 per cent in January.

Also, on month-on-month basis, the urban index rose by 1.52 per cent in February from 1.03 per cent recorded in January, while the rural index rose by 1.47 per cent in February from 1.00 per cent in January.

Meanwhile, the Composite Food Index rose by 18.53 per cent 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 per cent points from 1.29 per cent recorded in January.