By Peter OBIORA InvestAdvovcate
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Lagos (INVESTADVOCATE)- Nigeria’s inflation rate has slowed to 17.78 percent year-on-year in February, 1.94 percent points lower from the rate recorded in January (18.72) percent, according to latest statistics from the National Bureau of Statistics (NBS).
“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,” NBS said in its report.
NBS reports on a month-on-month basis, the Headline index increased by 1.49 percent in February 2017, 0.48 percent points higher from the rate of 1.01 percent recorded in January.
According to Nigeria’s statistics office, the Food Index increased by 18.53 percent (year-on-year) in February, up by 0.71 percent points from rate recorded in January (17.82) percent 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.
Price movements recorded by All Items less farm produce or Core sub, 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.
“Index rose by 16.00 percent (year -on-year) in February, down by 1.90 percent points from rate recorded in January (17.90) percent,” the NBS report affirmed.
During the month, the highest year on year increases were seen in electricity, Liquid and solid fuels, Fuels and lubricants for personal transport equipment, Clothing materials, other articles of clothing and clothing accessories and book and stationaries
The Urban index rose by 18.57 percent (year-on-year) in February from 20.31 percent recorded in January, and the Rural index increased by 16.98 percent in February from 17.34 percent in January.
On month-on-month basis, the urban index rose by 1.52 percent in February from 1.03 percent recorded in January, while the rural index rose by 1.47 percent in February from 1.00 percent in January.
The NBS says, the corresponding twelve-month year-on-year average percentage change for the urban index increased from 17.91 percent in January to 18.42 percent in February, while the corresponding rural index also increased from 15.18 percent in January to 15.70 percent in February.
