Inflation slows for 11th consecutive period, eases to 15.37%

The Nigeria’s annual inflation has slowed for the 11th consecutive period in December, easing to 15.37 per cent against15.90 per cent recorded in November and 15.91 in October 2017, the new report by the National Bureau of Statistics (NBS) on Tuesday has revealed.

The statistiscs office in its Consumer Price Index (CPI) report for December 2017, disclosed that year 2017 ended the with a rate of 15.37 per cent (year-on-year) in December the same year.

The latest figure, however, showed that 0.53 per cent points lower than the rate recorded in November, represented 11th consecutive disinflation (slowdown in the inflation rate though still positive) in headline year -on- year inflation since January 2017.

According to the report, increases have been recorded in all the Classification of Individual Consumption by Purpose (COICOP) divisions that yield the Headline Index. On a month-on-month basis, the bureau stated that the Headline Index increased by 0.59 per cent in December 2017, 0.19 per cent points higher from the rate of 0.78 per cent recorded in November.

It stated that the percentage changed in the average composite CPI for the 12 months period ending in December 2017 over the average of the CPI for the previous 12 months period. The NBS stated that the percentage of average composite CPI was 16.50 per cent in the month, showing 0.26 per cent points lower from 16.76 per cent recorded in November 2017.

Meanwhile, the report stated that the Urban Inflation Rate rose by 15.78 per cent (year-on-year) in December from 16.27 per cent recorded in November. It, however, stated that the rural inflation rate also eased by 15.02 per cent in December from 15.59 per cent in November.

On month-on-month basis, the report stated that the urban index rose by 0.66 per cent in December, down by 0.19 from 0.85 per cent recorded in November. It also stated that the rural index rose by 0.54 per cent in December, down by 0.18 per cent when compared with 0.72 per cent in November.

According to the report, the corresponding 12 months year-on-year average percentage change for the urban index is 16.92 per cent in December. This, it stated, was less than 17.26 per cent reported in November 2017, while the corresponding rural inflation rate in December is 16.10 per cent compared to 16.29 per cent recorded in November 2017.

Meanwhile, the CPI in November on a month-on-month basis, increased by 0.78 per cent but 0.02 per cent points higher from the rate of 0.76 per cent recorded in October. According to NBS report, the headline index is the first rise in month on month inflation following five consecutive month-on-month contraction in headline inflation since May 2017.

NBS said, “The percentage change in the average composite CPI for the 12 month period ending in November 2017 over the average of the CPI for the previous twelve month period was 16.76 per cent, showing 0.21 percent point lower from 16.97 per cent recorded in October 2017.”

On Urban inflation rate, the bureau said it rose by 16.27 per cent in November from 16.19 per cent recorded in October, while the rural inflation rate also eased by 15.59 per cent in November from 15.67 per cent in October.

“On month-on-month basis, the urban index rose by 0.85 percent in November, up by 0.03 from 0.82 percent recorded in October, while the rural index rose by 0.724 percent in November, up by 0.009 when compared with 0.715 percent in October.

“High year on year food prices and food price pressure continued into November though consistently at a slower pace month on month. The Food Index increased by 20.30 per cent (year-on-year) in November, down marginally by 0.01 per cent points from the rate recorded in October (20.31 per cent).