Nigeria’s Inflation Rise 9.6% on Imported Foods

By Peter OBIORA InvestAdvocate

http://www.nigerianstat.gov.ng/pages/download/340

Lagos (INVESTADVOCATE)-Nigeria’s inflation rose 9.6 percent in the month of December 2015 on imported foods a 0.2 percent higher than what was recorded in November, according to the National Bureau of Statistics (NBS) latest report.

NBS says apart from higher prices of imported food items within the Food & Non Alcoholic Beverages Divisions; also the intermittent PMS supply shortages divisions all impacted the index.

According to the report, food prices recorded significant pressures in December. “The Food sub-index increased to 10.6 percent (year-on-year) during the month, 0.3 percent from rates recorded in November. All major food groups which contribute to the Food sub-index increased at a faster pace during the month with the exception of the Milk, Cheese and Eggs group,” NBS reported.

The nation’s statistics office reported that increases in the “All Items less Farm Produce” or Core sub-index rose at the same rate for the third consecutive month at 8.7percent. It said the core sub-index was weighted upon by slower increases in major divisions as Housing Water, Electricity, Gas and Other Fuels, Furnishings and Household Equipment Maintenance continues to weigh on the index.

“On a month-on-month basis, the Headline Index increased at a faster pace for a second consecutive month. The index increased by 1.0 percent, 0.3 percent higher from 0.7 percent in November,” NBS affirmed.

It reported that all indices which contribute to the Headline index increased at a faster pace (month-on-month) in November with the exception being the Education division, which has increased albeit at a slower pace for four consecutive months.

The NBS says in December, the Urban index grew at a faster pace relative to November, increasing by 9.7 percent (year-on-year) from 9.4 percent. “The pace of increase recorded in December in the Rural Index was relatively muted, increasing from 9.3 percent in November to 9.4 percent in December, ” according to the NBS.

“On a month-on-month basis, both the Urban and Rural indices increased at the same pace, both increasing at 1.0 percent in December, 0.3 percent from 0.7 percent in November. The percentage change in the average composite CPI for the twelvemonth period ending in December over the average of the CPI for the previous twelve-month period was 9.0 percent, marginally higher from 8.9 percent recorded in November,” the report added.

Also, the NBS said the corresponding twelve-month year-on-year average percentage change for the Urban index increased from 8.9 percent in November to 9.1 percent in December, while the corresponding Rural index also edged higher to 8.9 percent in December from 8.8 percent in November.