Menu

The National Bureau of Statistics reported today that the country’s Consumer Price Index rose to 18.72 per cent in January compared to a 18.55 per cent rise in December, 2016.

The statistics agency said the rise in inflation, on a month-on-month basis, was driven by price increases in passenger transport by air, fuels and lubricants for personal transport equipment, liquid fuels, cooking gas, oils and fats, fruits, Miké cheese and eggs, fish, meat and bread and cereals.

Food inflation rose to 17.82 per cent in January as against 17.39 per cent recorded in December owing to increases in prices of bread and cereals, meat, oil and fats, and fish.

“During the month, all major food sub-indexes increased, with soft drinks recording the slowest pace of increase at 7.8 percent year on year,” the NBS said.

During the month under review, core inflation – which excludes the prices of volatile agricultural produce – fell to17.9 per cent compared with 18.1 per cent recorded in December as all key divisions which contribute to the index increased.

“The highest increases were recorded in electricity, gas, passenger transport by air, liquid fuel, fuel and lubricants for personal transport equipment and solid fuels,” the statistics agency said.

The urban index rose by 20.31 per cent in January from 20.12 per cent recorded in December, while the rural index increased by 17.34 per cent in January from 17.20 per cent recorded in the previous month.

The main inflationary pressures in Africa’s largest economy include foreign exchange shortages, the devaluation of the naira, and the increase in fuel prices. Last month, the Central Bank of Nigeria retained its benchmark interest rate at 14 per cent in a bid to curb rising inflation and stimulate economic growth.

Inflation has remained outside the upper limit of the apex bank’s target rate of 9 per cent since June 2015.