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Inflation rose by 8.2% in January – NBS

Inflation rose by 8.2% in January – NBS

National Bureau of Statistics (NBS) on Monday said the Consumer Price Index (CPI) which measures inflation rose by 8.2 per cent in January 2015 from 8.0 per cent recorded in December 2014.

A release by the Statistician General of the Federation, Dr. Yemi Kale, said prices rose by 8.2 per cent (year-on-year), 0.2 percentage point from 8.0 per cent recorded in December.

The NBS attributed the rise in inflation to “All major Classification of Individual Consumption by Purpose (CIOCOP) divisions that contribute to the index increased during the period.”

The statistical agency said “food prices measured by the Food Sub-index, held at roughly the same pace of increase in January as in December, while on the aggregate, upward pressure on the headline index was largely as a result of increasing divisions that contribute to the Core Sub-index.

“Food prices increased at the same pace in January as recorded in December at 9.2 per cent.

“Most groups that contribute to the food sub-index increased at a faster pace during the month.

“This was countered however by slower rises in the fish, fruit, coffee, tea and cocoa and soft drinks groups.

“After a brief respite in December, the pace of advances recorded by the “All Items less Farm Produce” or Core sub-index picked up in January,” the body said.

It also said the Core Sub-index increased by 6.8 per cent year-on-year, 0.6 percentage point from 6.2 per cent recorded in December.

The NBS added that prices increased at a faster pace in most major non-food divisions such as Housing Water, Electricity, Gas and Other Fuels, Furnishings and Household Equipment Maintenance; and “Clothing and Footwear Divisions”.

It should be noted that the Headline Index is made up of the Core Index and Farm Produce items.

As Processed Foods are included in both the Core and Food sub-indices, this implies that these sub-indices are not mutually-exclusive.

The NBS further recalled that in January, the Headline Index rose at a marginally slower pace relative to December.

“Prices rose by 0.81 per cent (month-on-month) in January, lower from 0.82 per cent recorded in December.

“The pace of price increases picked up across half all COICOP divisions and slowed in about half of the other divisions, thus weighing on the overall month-on month increase.

“Year-on-year, the Urban index increased by 0.3 percentage point to 8.2 per cent in January, while rural prices as recorded by the Rural All Items index increased marginally from 8.0 per cent in December to 8.1 in January.

“On a month-on-month basis, both the Urban and Rural indices recorded the same pace of increase in January; 0.8 per cent.

“Price increases have held at the same rate for two consecutive months. The percentage change in the average composite CPI for the twelve-month period ending in January over the average of the CPI for the previous twelve-month period was recorded at 8.1 per cent, marginally higher from 8.0 percent recorded in December.

“The corresponding 12-month year-on-year average percentage change for the Urban index was unchanged at 8.2 per cent in January, while the corresponding Rural index was also unchanged in January, increasing by 7.9 per cent,” the NBS explained.

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