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Higher Food Prices Push up Inflation to 8% in December

By The Rainbow
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Nigeria's Consumer Price Index (CPI) increased marginally by 0.1 per cent to end 2013 at 8.0 per cent, according to figures posted by the National Bureau of Statistics (NBS).

The stood at 7.9 per cent in November, indicating a good measure of stability in one of the key measure of macroeconomic variables.

NBS attributed the 0.1 per cent increase in the headline index to a rise in prices '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.'

The  core sub-index rose by 7.9 per cent in the period under review, marginally higher from 7.8 per cent in November, the statistical agency reported.

The urban composite CPI stood at 151.4 points in December, indicating a year-on-year increase of 8.1 per cent, unchanged from the rate recorded in November, while the rural component stood at 7.9 per cent year-on-year in December, the first uptick in five months.

The agency report reads,  'On a month-on-month basis, the Urban All-items index increased by 0.8 per cent in November, the same rate over the last four months, while the Rural All Items index was recorded at 0.76 per cent, up from 0.68 recorded in November.

'The all items less farm produce or core index, which excludes the prices of volatile agricultural products, edged higher during the second half of 2013. Prices increased for each month during this period to end at 7.9 percent in December, marginally higher than 7.8 per cent recorded in November.

'On a month-on-month basis, the core sub-index increased at a faster pace in December (0.8 percent), compared with the previous three months where it had been stable at 0.6 per cent.'

: '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 products.

'The average 12 month annual rate of rise of the index was recorded at 7.7 per cent for the twelve-month period ending in December 2013, down 0.4 percentage points from 8.1 per cent recorded in November 2013.'