Nigeria’s Inflation Rate down 10 Times in A Row, Says NBS

Nigeria’s Consumer Price Index (CPI), which measures inflation, decreased to 15.90 per cent making it 0.01 per cent lower than the 15.91 per cent recorded in October, 2017.

The National Bureau of Statistics (NBS), which stated this in a report published on its website, however said despite the month-on-month decrease, the inflation rate increased year-on-year by 15.90 per cent in November 2017.

The report said: “Increases were recorded in all Classification of Individual Consumption by Purpose, COICOP, divisions that yield the Headline Index. On a month-on-month basis, the Headline index increased by 0.78 per cent in November 2017, 0.02 per cent points higher from the rate of 0.76 per cent recorded in October.

NBS said this represents the first rise in month-on-month inflation following five consecutive month on month contraction in headline inflation since May 2017.

It pointed out that the percentage change in the average composite CPI for the twelve month period ending in November 2017 over the average of the CPI for the previous twelve month period, was 16.76 per cent, showing 0.21 per cent point lower from 16.97 per cent recorded in October 2017.

The report added that urban inflation rate rose by 16.27 per cent year-on-year in November from 16.19 per cent recorded in October, while the rural inflation rate also eased by 15.59 per cent in November from 15.67 per cent in October.

On month-on-month basis, the report indicated, the urban index rose by 0.85 per cent in November, up by 0.03 from 0.82 per cent recorded in October, while the rural index rose by 0.724 per cent in November, up by 0.009 when compared with 0.715 per cent in October.

The corresponding twelve month year-on-year average percentage change for the urban index is 17.26 per cent in November. This is less than 17.57 per cent reported in October 2017, while the corresponding rural inflation rate in November is 16.29 per cent compared to 16.41 percent recorded in October 2017.

High year-on-year food prices and food price pressure continued into November though consistently at a slower pace month-on-month. The Food Index decreased marginally by 0.01 per cent from the 20.31 recorded in October and increased by 20.30 per cent year-on-year in November 2017, NBS said.

On a month-on-month basis, the Food sub-index increased to 0.88 per cent in November, causing a 0.03 per cent increase from the 0.85 per cent recorded in October, 2017. The report showed that this represents the first rise month on month, following five consecutive disinflation in month on month inflation since a 2017 high of 2.57 per cent in May 2017.

The average change of the Food sub-index annual rate for the twelve-month period ending in November 2017, over the previous twelve month average, was 19.39 percent, thereby resulting in a 0.25 percent points increase from the average annual rate of change, 19.14 per cent recorded in October. “The rise in the index was caused by increases in prices of bread and cereal, milk, cheese, eggs, coffee, tea, cocoa, fish and Oil and fats,” the report explained.

All items inflation in November 2017 was highest in Bauchi at 23.63 per cent, Nasarawa at 19.90 per cent and Kebbi at 19.22 per cent on a year-on-year basis; while Kogi, Edo and Delta States recorded the slowest rise in headline year-on-year inflation at 11.27 per cent, 13.11 per cent and 13.75 per cent respectively.

However, on a month-on-month basis, all items inflation was highest in Bauchi at 1.6 per cent, in Katsina at 1.44 per cent and Oyo 1.43 per cent; while Plateau, Edo, and Benue recorded the lowest month-on-month all item inflation in November 2017 at 0 per cent, 0.07 per cent and 0.21 per cent respectively.

Food inflation, in November 2017, was highest in Kwara, Ebonyi and Nasarawa states at 28.11 per cent, 25.03 per cent and 24.95 per cent respectively, while Kogi at 13.25 per cent, Benue at 15.19 per cent and Bauchi at 15.42 per cent recorded the slowest rise in food inflation in November 2017.

On a month-on-month basis, food inflation was highest in Oyo and Ebonyi at 1.96 per cent and the Federal Capital Territoty, Abuja at 1.93 per cent. Also, Akwa Ibom, Plateau and Benue at the decreased rates of 0.69 per cent, 0.13 per cent, and 0.06 per cent respectively, recorded food price deflation or negative inflation in November.

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