Inflation Drops to 14.33% in February as Food Index Eases to 17.59%

By Dipo Olowookere

For the 13th consecutive month, the Consumer Price Index (CPI), which measures inflation rate in Nigeria, dropped to 14.33 percent in February 2018 against 15.13 percent recorded in January 2018.

According to the National Bureau of Statistics (NBS), which released the inflation data on Wednesday, this was 0.8 percent points less than the rate January 2018 rate.

The stats office disclosed that increases were recorded in all COICOP divisions that yield the Headline Index.

On a month-on-month basis, the Headline index increased by 0.79 percent in February 2018, down by 0.01 percent points from the rate recorded in January.

The percentage change in the average composite CPI for the twelve month period ending February 2018 over the average of the CPI for the previous twelve month period was 15.93 percent, showing 0.29 percent point lower from 16.22 percent recorded in January 2018.

The Food Index increased by 17.59 percent (year-on-year) in February, down by 1.33 percent points from rate recorded in January 2018 (18.92) percent.

During the month, all major food sub-indexes increased.

Price movements recorded by All Items less farm produce or Core sub-index increased by 11.7 percent (year-on-year) in February 2018, down by 0.4 percent points from the rate recorded in January (12.10) percent.

During the month, the highest increases were seen in prices of Fuel and lubricants for personal transport equipment, Maintenance and repair of personal transport equipment, Narcotics, Vehicle spare parts, Passenger transport by air, Clearing, repair and hire of clothing, Hospital services, Domestic services and household services and Glassware, tableware and household utensils.

Also, the Urban inflation rate rose by 14.76 percent (year-on-year) in February 2018 from 15.56 percent recorded in January, while the Rural inflation rate also eased by 13.96 percent in February 2018 from 14.76 percent in January.

On month-on-month basis, the urban index rose by 0.82 percent in February 2018, down by 0.01 from 0.83 percent recorded in January, while the rural index also rose by 0.77 percent in February 2018, showing no difference with the rate recorded in January.

The corresponding twelve month year-on-year average percentage change for the urban index is 16.24 percent in February 2018. This is less than 16.55 percent reported in January, while the corresponding rural inflation rate in February 2018 is 15.64 percent compared to 15.89 percent recorded in January.