Nigeria’s Inflation Eases to 17.78% in Feb 2017
By Modupe Gbadeyanka
For the first time in 15 months, the inflation rate in Nigeria recorded a drop of about 0.94 percent in February 2017 to stay at 17.78 percent, compared with 18.72 percent it recorded in January 2017.
Latest data released by the National Bureau of Statistics (NBS) also revealed that price increases were recorded in all COICOP divisions that yield the Headline Index.
However, the major divisions responsible for accelerating the pace of the increase in the headline index were Housing, Water, Electricity, Gas and Other Fuel, Education, Food and Alcoholic Beverages, Clothing and Frontware and Transportation Services.
It was disclosed that 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.
Similarly, 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.
The NBS further noted that 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.
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 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.
Recall that last week, the Federal Government released an economic recovery plan, which it aimed to pull Nigeria out of recession.