From 19.42 percent in December 2017, Nigeria’s food inflation decelerated in January to 18.92 percent, the lowest in ten months as prices of locally produced food items moderated, according to the National Bureau of Statistics (NBS).
The NBS also said headline inflation equally dropped slightly by 0.24 percent in January 2018 to 15.13 percent from 15.37 percent recorded in December 2017. This makes it the twelfth consecutive slowdown in the headline year on year inflation since January last year.
In its Consumer Price Index report released on Wednesday, the bureau said “high year on year food prices and food price pressure continued into December though generally at a slower pace year on year.”
“The rise in the food index was caused by increases in prices of imported food in general as well as bread and cereals, milk, cheese and eggs, Vegetables, Fish, Coffee tea and cocoa, meat, Potatoes yam and other tubers and Oil and fats.
“The Food Index increased by 18.92 percent (year-on-year) in January 2017, down from the rate recorded in December (19.42 percent),” the statistics office stated.
It said that on a month-on-month basis, the Food sub-index increased by 0.87 percent in January 2018, down by 0.29 percent from 0.58 percent recorded in December.
The NBS said increases were recorded in all Classification of Individual Consumption according to Purpose (COICOP) divisions that yield the Headline Index.
On a month-on-month basis, the Headline index increased by 0.80 percent in January 2018, 0.21 percent points higher from the rate of 0.59 percent recorded in December 2017.
The percentage change in the average composite CPI for the twelve-month period ending January 2018 over the average of the CPI for the previous twelve-month period was 16.22 percent, showing 0.28 percent point lower from 16.50 percent recorded in December 2017.
While urban inflation declined to 15.56 percent in January 2018 from 16.78 percent recorded in December 2017, rural inflation rate also eased by 14.76 percent in January 2018 from 15.02 percent in December 2017.
On month-on-month basis, the urban index rose by 0.83 percent in January 2018, up by 0.17 from 0.66 percent recorded in December 2017, while the rural index also rose by 0.77 percent in January 2018, up by 0.23 when compared with 0.54 percent in December 2017.
The corresponding twelve-month year-on-year average percentage changefor the urban index is 16.55 percent in January 2018. This is less than 16.92 percent reported in December 2017, while the corresponding rural inflation rate in January 2018 is 15.89 percent compared to 16.10 percent recorded in December 2017.
On the other hand, core inflation which excludes the prices of volatile agricultural remained unchanged at 12.10 percent, similar to rate recorded in December 2017.
On a month-on-month basis, the Core sub-index increased by 0.68 percent in January 2018, higher from 0.51 percent recorded in December.
The average 12-month annual rate of change of the index was 13.01 percent for the twelve-month period ending January 2018; this is 0.45percent points lower than 13.46 percent recorded in December 2017.
NBS said the highest increases were recorded in prices of Fuel and lubricants for personal transport and transport equipment, Vehicle spare parts, Accommodation services, maintenance and repair of personal transport equipment, Appliances articles and products for personal care, hotels and restaurants, Hairdressing salons and personal grooming establishments, clothing materials and other articles of clothing, garments, nondurable household goods and solid fuels.
The report shows that the states with the highest inflation rate on a year on year basis was kebbi followed by Nassarawa with 18.55% and 18.49% respectively while Anambra recorded the lowest with 13.34%.
On a month on month basis, Kogi and Bayelsa recorded the highest rate with 2.72% and 2.39% respectively while Cross River and Vauxhall recorded -0.02% and -0.05% respectively.
Cynthia Egboboh, Abuja
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