By InvestAdvocate

Lagos (INVESTADVOCATE)- ALL ITEMS INDEX
Index (CPI) which measures inflation rose by 7.7percent year-on-year. The moderation in year-on-year rates in February was as a result of higher year-on-year changes exhibited in February 2013.

During this period, prices increased by 0.75 percent on a monthly basis (the second highest price increased observed during the year) compared to a moderated increase in the month-on-month rate of change of 0.5 percent observed in February 2014.

Food prices also rose at a relatively slower rate in February 2014. Food prices, as observed in the Food sub-index, rose by 9.2 percent year-on-year.

Prices of yams, potatoes and other tubers; vegetables and fruits increased at slower rate in February, while prices of bread and cereals rose at a faster rate during the period. The price of meat products grew at the same rate year-on-year compared with January 2014.

After a brief respite in January 2014, prices in the core sub-index increased at a faster rate in February. Prices rose by 7.2 percent year-on-year, higher than the price increase recorded in January by 0.6 percentage points.

It should be noted that the Headline Index is made up of the Core Index and Farm Produce items. As Processed Foods are included in both the Core and Food sub-indices, this implies that these sub-indices are not mutually-exclusive.

On a monthly basis, prices increased at a slower rate for the second consecutive month, increasing by 0.5 percent in February, marginally lower than the 0.64 percent increase recorded in January.

After a slight increase in January (year-on-year) urban price increases moderated as indicated by the Urban composite CPI. The index was recorded at 153.0 points in February, a 7.8 percent increase from levels recorded in February 2013. The price increase was lower than rates recorded in January by 0.4 percentage points.

The corresponding Rural National CPI recorded a 7.7 per cent year-on-year change in February 2014, easing marginally from the rate recorded in January (7.8 percent).

On a monthly basis, price increases in the Urban All-items index eased for the second consecutive month in February, increasing by 0.5 per cent.

The Rural All Items index further slowed in a similar fashion increasing by 0.49 in February, down from 0.68 percent recorded in January. The percentage change in the average

Composite CPI for the twelve-month period ending in February 2014 over the average of the CPI for the previous twelve-month period was recorded at 8.3 percent, marginally lower from the 8.4 percent average twelve month rate of change recorded in January 2014. The corresponding 12-month year-on-year average percentage change for the Urban index was 8.5 percent, while the corresponding Rural index was recorded at 8.1 percent. Both were lower from the previous twelve month rates of change by 0.2 percentage points.

FOOD INDEX
Food prices increased at a marginally lower rate of 9.2 percent in February 2014, after increasing at a steady rate over the previous three months at 9.3 percent (year-on-year).

On a month-on-month basis, the rate of increase of the Food sub-index eased for the second consecutive month in February, rising by 0.6 percent in February, down from the 0.8 percent increase recorded in January.

On a month-on-month basis, the highest price increases were recorded in the Breads and Cereals, Oils and fats and vegetable classes.

The average annual rate of rise of the Food sub-index for the twelve-month period ending in February 2014 was 9.5 percent, marginally lower from the 9.6 percent recorded for the average of the 12 month period ending in January 2014.

ALL ITEMS LESS FARM PRODUCE
The “All items less Farm Produce” or Core index, which excludes the prices of volatile agricultural products increased at a faster rate (year-on-year) in February 2014 when compared with January 2014.

Prices increased by 7.2 percent, higher by 0.6 percentage points from the 6.6 percent rate recorded in January.

On a month-on-month basis, prices also picked up in February, increasing by 0.5 percent. This was 0.3 percentage points higher than the 0.2 percent rate recorded in January.

On a month-on-month basis, the increase in the Core sub-index was as a result of price increases across various class items in particular; Appliances, articles and products for personal care, Repair of household appliances, and Motor cars.

The average 12 month annual rate of rise of the index was recorded at 7.0 percent for the twelve-month period ending in February 2014, down by 0.3 percentage points from 7.3 per cent recorded in January 2014, and maintaining its year-long downward trend.

Source: NBS