Nigeria’s Inflation rate as measured by the Consumer Price Index (CPI) has improved further to 14.33 per cent in February, compared to 15.13 settled in January, but financial experts believed The National Bureau of Statistic (NBS), on Wednesday, said the nation’s inflation slowdown to 14.33 per cent (year-on-year) in February, making it 13th consecutive disinflation since 2017.
Inflation rate dropped by 0.8 per cent points, lesser than 15.13 per cent rate recorded in January 2018 According to the bureau, “on a month-on-month basis, the Headline index increased by 0.79 per cent in February 2018, down by 0.01 per cent points from the rate recorded in January.
“The percentage change in the average composite CPI for the twelve month period ending February 2018 over the average of the CPI for the previous twelve month period was 15.93 per cent, showing 0.29 per cent point lower from 16.22 per cent recorded in January 2018.
“The Food Index increased by 17.59 per cent (year-on-year) in February, down by 1.33 per cent points from rate recorded in January 2018 (18.92) per cent.
“During the month, all major food sub-indexes increased. Price movements recorded by All Items less farm produce or Core sub-index increased by 11.7 per cent (year-on-year) in February 2018, down by 0.4 per cent points from the rate recorded in January (12.10) per cent.
“During the month, the highest increases were seen in prices of Fuel and lubricants for personal transport equipment, Maintenance and repair of personal transport equipment, Narcotics, Vehicle spare parts, “Passenger transport by air, Clearing, repair and hire of clothing, Hospital services, Domestic services and household services and Glassware, tableware and household utensils.
“The Urban inflation rate rose by 14.76 per cent (year-on-year) in February 2018 from 15.56 per cent recorded in January, while the Rural inflation rate also eased by 13.96 per cent in February 2018 from 14.76 per cent in January.
“On month-on-month basis, the urban index rose by 0.82 per cent in February 2018, down by 0.01 from 0.83 per cent recorded in January, while the rural index also rose by 0.77 per cent in February 2018, showing no difference with the rate recorded in January.
“The corresponding twelve month year-on-year average percentage change for the urban index is 16.24 percent in February 2018. This is less than 16.55 percent reported in January, while the corresponding rural inflation rate in February 2018 is 15.64 percent compared to 15.89 per cent recorded in January,” the report by NBS stated.
The report by NBS stated that composite food index rose by 17.59 per cent in February 2018. “The rise in the index was caused by increases in prices of Bread and cereals, Milk, cheese and egg, Potatoes, yam and other tubers, Fish and Vegetables, Coffee, tea and cocoa.
“On a month-on-month basis, the Food sub-index increased by 0.85 per cent in February 2018, down by 0.02 per cent points from 0.87 per cent recorded in January.
“The average annual rate of change of the Food sub-index for the twelve-month period ending February 2018 over the previous twelve month average was 19.52 per cent, 0.1 per cent points from the average annual rate of change recorded in January (19.62) per cent, the report by NBS added. Meanwhile, an economist, Dr. Aminu Usman has predicted that inflation rate is likely to stabilise in the second quarter of 2018.
Usman, the Head of Economics Department, Kaduna State University, said this in an interview with newsmen on Monday in Abuja. He was reacting to the February inflation report.
The Inflation rate, measured by the Consumer Price Index (CPI), dropped from 15.33 per cent in January to 14.33 per cent in February, according to the National Bureau of Statistics (NBS).
“The current drop may be linked to stability in the external sector and the Foreign Exchange (FX) rate because inflation is fuelled by imports,” the don said. Usman, however, said there may be slight increase in inflation by the end of the second quarter and into the third quarter.
He said the rise in inflation by the third quarter would be as a result of a likely rise in food prices due to onset of the rains. Meanwhile, the NBS said that the 14.33 per cent figure in February would be the 13 consecutive reductions recorded in inflation since 2017.
This, according to the bureau, is driven by a decline in the pace of food price increases. The food price index showed inflation at 17.59 per cent in February compared to 18.92 per cent in January.
