Consumer prices in Nigeria increased 14.33 percent year-on-year in February of 2018, slowing from a 15.13 percent gain in the prior month and below market expectations of 14.5 percent. It was the lowest inflation rate since April 2016 as cost rose less for food and non-alcoholic beverages and housing and utilities. Inflation Rate in Nigeria averaged 12.50 percent from 1996 until 2018, reaching an all time high of 47.56 percent in January of 1996 and a record low of -2.49 percent in January of 2000.
Nigeria’s Inflation rate as measured by the Consumer Price Index (CPI) has further dropped from 15.13% in January to 14.33 per cent in February. The National Bureau of Statistics (NBS) disclosed this in its CPI report for February released on Wednesday 14th March in Abuja.
The Bureau said that the figure showed 13 consecutive reductions in inflation rate since January 2017. According to the Bureau, this figure is 0.8 per cent less than the rate recorded in January (15.13) per cent.
The NBS, however, explained that increases were recorded in the Classification of Individual Consumption by Purpose (COICOP) divisions that yield the headline index. On month-on-month basis, it stated that the headline index was 0.79 per cent in February, but the figure was down by 0.01 per cent from the rate recorded in January. It said that the percentage change in the average composite CPI for the 12-month period ended February 2018 over the average of the CPI for the previous 12-month period was 15.93 per cent.
It stated that the figures were 0.29 per cent lower than the 16.22 per cent recorded in January. The report further indicated that the Food Index (year-on-year) declined by 1.33 per cent from18.92 per cent in January to 17.59 per cent in February.
The report also said all major food sub-indices increased during the month. It stated that price movements recorded by all items less farm produce or Core sub-index increased to 11.7 per cent (year-on-year) in February.
According to report, the figure was down by 0.4 per cent from the rate recorded in January (12.10) per cent. It said the highest increases were seen in prices of fuel and lubricants for personal transport equipment, maintenance and repair of personal transport equipment and narcotics during the month.
The report said increases were recorded in the price of vehicle spare parts, passenger transport by air, clearing, repair and hire of clothing, hospital services, domestic services and household services and glassware, tableware and household utensils. The bureau said that the food price index showed inflation at 17.59 per cent in February from 18.92 per cent in January. Core inflation was 15.13 per cent last month.
Dr Yemi Kale, the Statistician-General, had said in January that he expected that inflation would fall faster this year compared with 2017, but that spending ahead of 2019 presidential elections could stoke prices. Food price inflation has remained in high double digits over the last year. Kale said the country was in harvest period and output was increasing which would help lower food prices, but household consumption remained fragile after the 2016 recession.
DEFINITION OF TERMS
Inflation Rate: This is the rate at which prices increase over time, resulting in a fall in the purchasing value of money.
Consumer Price Index (CPI): A consumer price index (CPI) measures changes in the price level of market basket of consumer goods and services purchased by households. The CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically.
Classification of Individual Consumption according to Purpose (COICOP): This is a Reference Classification published by the United Nations Statistics Division that divides the purpose of individual consumption expenditures incurred by three institutional sectors, namely households, non-profit institutions serving households,
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