January Inflation In Nigeria Drops To 15.13%, Kebbi Records Peaks At 18.55%

The National Bureau of Statistics (NBS), on Wednesday released the Consumer Price Index (CPI) for the month of January, showing that inflation growth, though still in the double digit range recorded the 12th consecutive slow down to 15.13%, 0.24% better than the 15.37% in December 2017.

The CPI helps to measure the average change over time in prices of goods and services consumed by people on a daily basis. It is used to gauge inflation rate in a country or location.

Month-on-Month, January inflation stood at 0.21%, down from 0.59% in December; with the highest increase recorded in the prices of bread and cereals, vegetables, meat, potatoes, yams and other tubers; just as coffee, tea and cocoa; milk, cheese and egg; oil ad fat; as well as fish.
Unlike in the month of December, food inflation however rose by 18.92%m as against 19.42%; even as it jumped to 0.87% MoM from 0.57% in December, a situation that was blamed on the continued pressure on food prices, although at a slower pace YoY.

“The average annual rate of change of the food sub-index for the 12-month period ending January 2018 over the previous 12-month average was 19.62%, 0.07% points from the average annual rate of change recorded in December 2017 (19.55%),” it said.
The rise in food index was blamed on increases in prices of imported food in general as well as bread and cereals, milk, cheese and eggs, among others, which may not be unrelated to the fluctuation in the exchange of the Naira to global currencies like the US$, British Pounds and the Euro essentially, a situation that has been mitigated by the Central Bank of Nigeria (CBN) intervention in the inter-bank segment of the nation’s foreign exchange market.

Core inflation stagnated at 12.1% Year-on-Year, but climbed to 0.68% MoM from 0.51% in the preceding month; propelled by the rice in the cost of fuel and lubricants for personal transport equipment; vehicle spare parts; accommodation services, maintenance and repair of personal transport equipment; as well as appliances aticules and products for personal care, hotels and restaurants.

Others were hairdressing salons and personal grooming establishments, clothing materials and other articles of clothing; garments; and non-durable household goods.
Also, urban inflation YoY dropped to 15.56% from 16.78% in December; while on a month-on-month basis, it climbed from December’s 0.66% to 0.83%.

Inflation rate in Nigeria’s rural dwellings averaged 14.76%, from 0.66% in December; while MoM, it climbed to 0.77% from 0.54%
The NBS believes the situation could have been better, but for the indirect effects of the lingering fuel scarcity across the country.
On a state-by-state basis, inflation in the country was at its peak in Kebbi, in the northwest flank, where it stood at 18.55%; followed by Nasarawa in the north-central at 18.49%; while Bauchi in the north-east recorded 18.01%.
The lowest inflation rate nationwide was recorded in Delta, south-south Nigeria, at 12.77%; Kogi, also in the north-central recorded 13.28%; followed by Anambra, south-east with 13.34%.

The situation was however different MoM, as Kogi recorded the fastest growth of 2.72%; ahead of Beyelsa in the south-south at 2.39%; and Sokoto in the north-west with 1.68%; while the lost came from Cross Rivers (south-south), 0.02%; Bauchi, 0.05%; and Kebbi, 0.15%.
For food inflation YoY, Kwara recorded the highest growth rate of 24.46%; Nasarawa followed with 22.77% and 22.6% for Bayelsa, while Bauchi in the north-east recorded the slowest growth of 13.34%; followed by Anambra and Benue with 14.63% ad 14.78% respectively.
MoM, Bayelsa recorded the highest growth rate in food inflation at 3.47%; ahead of the 3.38% by Kogi; and Nasarawa’s 2.26%; with the lowest coming from Yobe also in the north-east at 0.2%; Kebbi, 0.26% and Cross River, 0.54%.

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