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Inflation closes 2013 at single digit, moderates to 8%


Nigeria’s inflation (year-on-year) closed at single digit in 2013 reflecting the moderation in food prices and at tune with analysts’ forecast. Inflation figure settled at 8 percent in December, however, at a 0.1 percentage point higher from 7.9 percent recorded the previous month.

The National Bureau of Statistics (NBS) reported yesterday that food inflation remained stable at 9.3 percent as in the previous month of November, but core inflation rose marginally to 7.9 percent.

The data bureau noted that in December, prices rose on the back of increases in eight of the eleven non-food Classification of Individual Consumption According to Purpose (COICOP) divisions which contribute to the core sub-index.

Increases in these divisions were, however, offset by slower increases in “alcoholic beverage, tobacco and kola, housing water, electricity, gas and other fuels”, and “transport” divisions.

“As a result, the core sub-index rose by 7.9 percent in December, marginally higher from 7.8 percent recorded in November. This is the sixth consecutive month of an increase in the core.”

But the food sub-index, the bureau further noted, grew at the same rate in December as recorded in November at 9.3 percent.

Prices increased in major food classes such as bread and cereals, meat, fish and dairy classes. Prices rose by less, however, in the “potatoes, yams and other tubers”, fruit, vegetables, and “sugar, jam, honey, chocolate and confectionery” classes, yielding the unchanged year-on-year rate, the data office added.

In December, on a month-on-month basis, the highest price increases were recorded in the oils and fats, bread and cereals, meat and fish classes.

On the other hand, the increase in the core sub-index was as a result of price increases across various class items with the highest increases observed in the “maintenance and repair of personal transport equipment”, “repair of house hold appliances” and pharmaceutical pro