Inflation hits 8.2 per cent in January, says NBS

THE Consumer Price Index (CPI), a monthly inflation measuring system released by the National Bureau of Statistics (NBS), Monday shows that prices of goods and services in the month of January has risen to 8.2%, up marginally by 2% from 2014 December 8.0%.

    A breakdown of the index made available to The Guardian Monday in Abuja also indicated that food prices increased by 9.2%, precisely at the same pace of price increase recorded last December and January 2015.However, prices of major Non food divisions such as Housing, Water, Electricity, Gas, and Furnishing and Households Equipment, Clothing and Footwear climbed at higher pace.

    “In January, the Consumer Price Index (CPI) which measures inflation rose by 8.2 percent (year-on-year), 0.2 percentage points from 8.0 percent recorded in December. All major divisions that contribute to the index increased during the period. Food prices measured by the Food Sub-index held at roughly the same pace of increase in January as in December, while on the aggregate, upward pressure on the Headline index was largely as a result of increasing divisions that contribute to the Core Sub-index. Prices increased at a faster pace in most major non-food divisions such as “Housing Water, Electricity. Gas and Other Fuels,” “Furnishings & Household Equipment Maintenance;” and “Clothing and Footwear Divisions.” Most groups that contribute to the Food sub-index increased at a faster pace during the month. This was countered however by slower rises in the Fish, Fruit, “Coffee, Tea and Cocoa”; and Soft Drinks groups” the bureau said.

    According to the breakdown, after a brief slower pace of increase in December, price hikes recorded in all the sectors, less Farm Produce or Core sub-index picked up in January by 6.8 percent, year-on-year. This represents 0.6 percentage rise from the 6.2 percent recorded in December. Food prices as measured by the Food sub-index rose by 9.2 percent in January, unchanged from price increases recorded in December. Price increases were also marginally higher from the 12 month low recorded in November of 2014 at 9.1 percent.

     On a month-on-month basis, the highest price increases were recorded in the Vegetables, Meat, “Potatoes, Yams and Other Tubers”; and “Bread and Cereal” groups. The average annual rate of change of the Food sub-index for the twelve-month period ending in January 2015, over the previous twelve-month average was 9.5 percent.

    The pace of increases in the “All items less Farm Produce” or Core index, which excludes the prices of volatile agricultural produce picked up in January. Prices rose by 6.8 percent (year-on-year), up from 6.2 percent in December with the strongest increases recorded in the “Housing, Water, Electricity, Gas and Other Fuels” divisions.

    “On a month-on-month basis, the Core Sub-index slowed marginally in January. Prices increased by increasing by 0.7 percent from 0.8 percent in December. The highest increases were recorded in the “Furniture and furnishings”; “Non- durable household goods”; Clothing materials, and “Shoes and other footwear” groups. The average 12 month annual rate of rise of the index was recorded at 6.9 percent for the twelve-month period ending in January 2015, unchanged from the 12 month rate recorded in December,” the bureau said.