THE National Bureau of Statistics (NBS), on Wednesday, announced that the rate of inflation in the country rose to 18.72 per cent in January from 18.55 per cent in December 2016.
The inflation surge, which was occasioned by rise in the prices of food items, transportation fare and energy cost, is the highest in over 11 years.
The galloping inflation, amid recession and epileptic power supply, has made Nigerians, especially the working class, poorer as they have had to spend more on household items despite their income being fixed.
According to the NBS, “the Food Index increased by 17.82 per cent (year-on-year) in January.” Compared with the 10.6 per cent inflation rate of food items in January 2016, it means inflation rate on food items went up by 7.10 per cent over the last one year. This in effect means expenditure on food items rose by 7.10 per cent. The implication is that those who spent N1,000 on food items in January 2016, had to spend N1,071 on the same food items in January 2017; those who spent N10,000 on food in January 2016, had to spend N10,710 in January 2017 and those who spent N100,000 in January 2016, had to spend N107,100 in January 2017.
In the same vein, Nigerians have had to pay more for other items such as housing, water, electricity and gas over the last one year.
NBS reported that in January 2017, “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 per cent respectively.’’
Compared with the average inflation rate of 9.62 per cent in January 2016, it means inflation on rents increased by 17.58 per cent; cost of water, gas and other fuels went up by 11.38 per cent, while price of education and transport rose by 7.58 per cent.
The implication of this is that those who spent N10,000 on rents in January 2016 had to spend N11,758 in January 2017, those who spent N100,000 had to spend N117,580, while those who spent N1million had to pay N1,170,580.
Similarly, more resources have been deployed to water, electricity, transportation and education in the last one year as many organizations have reviewed their rates and prices upwardly by between 7.58 and 11.38 per cent.
Saving has also been negatively impacted by the rising inflation as the value of money kept over the past one year has ebbed by 9.1 per cent over the last one year. Those who saved N1,000 lost N92 of the worth of their savings; those who saved N10,000, lost N920; those who saved N100,000 lost N9,200; those who saved N1million lost N92,000; while those who saved N10million lost N920,000.
and then