Inflation Rates Drops To 17.78%, First In 15 Months. - NBS

The National Bureau of Statistics (NBS) yesterday said inflation rate dropped to 17.78 per cent in February, 0.94 per cent below 18.72 per cent in January this year. The bureau said the decline represents the first time drop in 15 months following slower rises in food and non-food prices.



The latest report by NBS disclosed that inflation rate over the 15 months continued to accelerate given increased prices on Housing, Water, Electricity, Gas and Other Fuel, Education, Food and Alcoholic Beverages, Clothing and Footwear and Transportation Services.

According to NBS, “The Consumer Price Index (CPI) which measures inflation increased by 17.78 per cent (year-on-year) albeit at a slower pace in February 2017, 0.94 per  cent points lower from the rate recorded in January (18.72) per cent.

“This represents the first time in 15 months that the headline CPI has declined on year on year basis representing the effects of slower rises in already high food and non-food prices and favourable base effects over 2016 prices.’’
Price increases were recorded in all COICOP divisions that yield the Headline Index. However, 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. 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.

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 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.
The report by NBS noted 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.
“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 percent in February from one per cent in January.

“The corresponding twelve-month year-on-year average percentage change for the urban index increased from 17.91 per cent in January to 18.42 per cent in February

“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 Foodsub-index increased by 1.99 per cent in February, up by 0.7 per cent points from 1.29 per cent recorded in January,” the report by NBS added.

Also, the NBS revealed that the average price of Liquefied Petroleum Gas (LPG), otherwise referred cooking gas continued to soared the across the country.

The Bureau’s attributed to price increase to issues raised by Nigeria Liquefied Petroleum Gas Association (NLPGA), which includes the delay of LPG product from berth at the port, as priority was placed on PMS (otherwise).

source:leadershipng