Inflation Rate Now Double Digit At 11.4%
BEVERLY HILLS, March 15, (THEWILL) – The National Bureau of Statistics has revealed that the nation's inflation rate has crossed to double digit, the first time in a very long time, hitting 11.4 percent in February compared to 9.6 percent the previous month.
According to the Consumer Price Index (CPI), an increase in major food items such as fish, vegetables and bread among others attributed to the 1.76 percent rise leading to the overall increase in inflation across almost all major divisions which contribute to the index.
The 11.4 per cent index for February, which is the highest in almost three years, is a blow to the Central Bank of Nigeria (CBN)'s target to avoid inflation at double digit which it last recorded in December 2012.
“In February, the Consumer Price Index which measures inflation recorded a significant uptick. The headline index increased by 11.4 per cent (year-on-year) in February, roughly 1.76 per cent points higher from rates recorded in January (9.6 per cent),” it revealed.
“The faster pace of increases which led to the overall increase in the headline index was recorded across almost all major divisions which contribute to the Headline index with the exception of the Restaurants and Hotels division which increased, albeit at a slower pace.
“During the month, all major food groups which contribute to the Food sub-index increased at a faster pace during the month with the exception of the Potatoes, Yams and Other Tubers; and Sugar, jam, honey, chocolate and confectionery groups.”
“Imported food items as well as other necessary inputs to producing key local staples such as bread continue to drive the food index higher. The Food index increased by 11.3 per cent (Year- on-year) 0.7 per cent points higher from rates recorded in January.
“The highest price increases were recorded in the Fish, Vegetables and Bread and Cereals groups for the second consecutive month.”
The Urban index rose by 12.3 percent (year- on-year) from 9.7 percent the earlier month while the rural index also increased by 10.7 percent in February from 9.5 percent in January.
On a month-on- month basis, both the urban and rural indices increased at a faster pace, as the urban index increased by 3.0 percent in February from 0.9 percent in January while the rural index index increased by 1.8 percent from 0.9 percent in January.
Meanwhile, the core sub-index, increased at a faster pace in February as imported items as well as other domestic shocks resulted in ripple effects across many divisions that contribute to the core. The index increased by 11.0 percent in February, roughly 2.2 percent from rates recorded in the previous month.
Story by David Oputah