Monday 14 December 2015

Inflation rose to 9.4% due to increase in food prices and transportation cost

Rough Road Ahead
The Consumer Price Index (CPI) which measures inflation, rose to 9.4 per cent in November compared to 9.3 per cent in the previous month, according to the National Bureau of Statistics (NBS).

It attributed the rise in the index to higher prices in food and beverages as well as increases in the in the transportation division following shortages in petrol supply coupled with the knock-on effect impacting transportation of people and goods across the country.

According to the CPI report for November, which was released by the statistical agency yesterday, the food sub- index increased to 10.3 per cent (year-on- year) during the month or 0.2 per cent from the rates recorded in October.

The NBS said all the major food groups which contribute to the Food sub-index increased at a faster pace during the month with the exception of the Fruits group which has been trending lower since June of this year.
It said: “In November, the highest price increases were recorded in Liquid Fuel (kerosene), Fuels and Lubricants for Personal Transport due to shortages, Spare Parts as a result of replacement costs, and passenger transport groups. The average twelve month annual rate of rise of the index was recorded at 8.0 per cent for the twelve- month period ending in November 2015, 0.2 per cent points higher from the twelve month rate of change recorded in October.”
Continuing, it noted: “While most divisions that contribute to the Sub-index slowed, the index was supported by increases in the transportation, alcoholic beverage, tobacco and kola; and recreation and culture divisions. On a month-on- month basis, the core sub-index increased at a faster pace, increasing by 0.6 per cent.”
The urban index moved from 8.8 per cent in October to 8.9 per cent in November, while the corresponding rural index also edged higher to 8.8 per cent in November from 8.7 per cent in October.

Meanwhile, the average monthly price paid by Nigerian households for a litre of petrol across the country increased to N115.35/litre in November compared to N93.48/litre in October, according to the NBS.

Yet, the official pump price of petrol is N87 and figures provided showed that on the monthly average, Nigerians have continued to purchase petrol above the official rate in the period under review.

Akwa Ibom State had the highest monthly average of N187.50/litre during the month in review compared to N92.75/litre in October while Abia recorded a monthly average of N146.59 in November.

Bauchi and Ogun recorded the lowest monthly average of N91.33 during the month in review.

Abuja and Lagos recorded monthly average of N102.75 and N103.84 respectively.

Credit: ThisDay

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