Post Views: 178 The National Bureau of Statistics (NBS), on Wednesday published Nigeria’s Consumer Price Index, showing that inflation rose by 11.44% ...
The National Bureau of Statistics (NBS), on Wednesday published Nigeria’s Consumer Price Index, showing that inflation rose by 11.44% in December, a month renown for end of the yuletide and year-end festivities.
The rise according to the report showed that inflation increased by 0.16% above the 11.28% of November, helped by growth across the various divisions.
Month-on-Month, inflation growth was however slower at 0.74%, as against the 0.8% in previous month, just as percentage change in average composite CPI for the year stood at 12.1%, as against 12.41% average for the 12-month period ended November 2018.
Urban inflation rate climbed by 11.73% (year-on-year) in December 2018 from 11.61% in the preceding month, while rural inflation rate increased by 11.18%, from 10.99%.
On a month-on-month basis, urban index rose by 0.76% in December 2018, down 0.83% recorded in November 2018; while rural index also rose by 0.72%, down by 0.06% from the 0.78% recorded in November 2018.
“The corresponding twelve-month year-on-year average percentage change for the urban index is 12.51% in December 2018. This is less than 12.83 percent reported in November 2018, while the corresponding rural inflation rate in December 2018 is 11.75%, compared to 12.05% recorded in November 2018,” the NBS added.
Food inflation index rose by 13.56% in the period under review, from 13.3% in November 2018, arising from increases in the “prices of soft drinks, Fish, Bread and Cereals, Oils and fats, Coffee, tea and cocoa, Meat, Milk, Cheese and egg, Vegetables, Potatoes, yam and other tubers.
Month-on-month, the food sub-index however climbed 0.81% up in December 2018, down by 0.09% from 0.9% recorded in November 2018, bringing average annual rate of change of the sub-index for the 12-month period ending December 2018 over the previous 12-month average was 14.35%, 0.45% points from the previous month’s 14.80% annual rate of change. The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 9.8% in December 2018, maintaining the same rate recorded in November 2018; while on month-on-month basis, the core sub-index increased by 0.5% in December 2018, down by 0.18% when compared with 0.68% recorded in November 2018.
On a state-by-state basis, all items inflation was at its peak in oil rich and Niger-Delta based Bayelsa, which recorded 13.32% in December 2018, followed by troubled Zamfara State in North West Nigeria with 13.23%; and Ekiti in the south-west, 13.18%. Incidentally, the slowest growth was seen for the month in Cross River, another oil-rich Niger Delta state at 8.21%; followed by Ogun, in the South West and neighbour to Nigeria’s commercial and economic hub, which recorded 8.71%; ahead of Kwara in the North Central at 9.12%.
On month on month basis however, December 2018 all items inflation was highest in Kebbi with 1.72%; Kaduna, 1.69% and Zamfara, 1.68%, all in North-West Nigeria; while Ogun reported 0.07%, the least growth, even as Kwara and Edo saw negative inflation or price deflation (general decrease in the general price level of goods and services or a negative inflation rate) in December 2018.
The NBS noted that in “analysing price movements under this section, note that the CPI is weighted by consumption expenditure patterns which differ across states. Accordingly, the weight assigned to a particular food or non-food item may differ from state to state making interstate comparisons of consumption basket inadvisable and potentially misleading.”
Expectedly, and at 16.50%, food inflation on a year-on-year basis was highest in Nigeria’s federal capital territory, Abuja, followed by Bayelsa, 16.23%; and 16.15% in Nasarawa, which houses a sizeable number of Abuja workers. With 10.46% growth, food inflation was slowest in Ogun; followed by Cross River, 10.57%; and Oyo 10.79%.
“On month on month basis however, December 2018 food inflation was highest in Yobe 2.40%; Kebbi and Zamfara, 2.36%; and Kaduna, 2.35%, “while Cross River, Edo, Kwara, Ogun and Oyo all recorded food price deflation or negative inflation (general decrease in the general price level of goods and services or a negative inflation rate) in December 2018.”