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Inflation Drops to 15.13% as Food Index Eases to 18.92% in January

By Modupe Gbadeyanka

For the 12th consecutive month, the inflation rate in Nigeria eased to 15.13 percent in the month of January 2018.

This information was made known on Wednesday by the National Bureau of Statistics (NBS) on its website.

According to stats office, the Consumer Price Index (CPI), which measures inflation, started the year 2018 increasing by 15.13 percent (year-on-year) in January 2018.

This was 0.24 percent points lower than the rate recorded in December 2017, at 15.37 percent, making it the twelfth consecutive disinflation (slowdown in the inflation rate though still positive) in headline year on year inflation since January 2017.

Increases were recorded in all COICOP divisions that yield the Headline Index, the nation’s stats office said.

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.

In addition, the percentage change in the average composite CPI for the 12-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.

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.

The Urban inflation rate rose by 15.56 percent (year-on-year) in January 2018 from 16.78 percent recorded in December 2017, while the 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 change for 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.

Meanwhile, high year on year food prices and food price pressure continued into December though generally at a slower pace year on year.

The Food Index increased by 18.92 percent (year-on-year) in January 2017, down from the rate recorded in December (19.42 percent).

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 average annual rate of change of the Food sub-index for the twelve-month period ending January 2018 over the previous twelve-month average was 19.62 percent, 0.07 percent points from the average annual rate of change recorded in December 2017 (19.55) percent.

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.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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