Costs of food, transport, others increase as inflation spikes by 12.13% YoY

By Omobayo Azeez

Latest report by the National Bureau of Statistics (NBS) has shown that Nigerians expended higher money on food items, transportation and other goods and services in January.

According to the report, the consumer price index (CPI) which measures inflation in Nigeria increased by 12.13 per cent year-on-year (YoY) in January 2020.

The latest figure is 0.15 per cent points higher than 11.98 per cent rate recorded in December 2019 and increases were recorded in all Classification of Individual Consumption According to Purpose (COICOP) divisions that yielded the Headline index.

On month-on-month basis, the headline index increased by 0.87 per cent in January 2020, which is 0.02 per cent rate higher than the rate recorded in December 2019 (0.85) per cent.

The percentage change in the average composite CPI for the twelve months period ending January 2020 over the average of the CPI for the previous twelve months period was 11.46 per cent, showing 0.06 per cent point from 11.40 per cent recorded in last year 2019.

According to the report, the urban inflation rate increased by 12.78 per cent in a 12-month period in January 2020 from 12.62 per cent recorded in December 2019, while the rural inflation rate increased by 11.54 per cent in January 2020 from 11.41 per cent in December 2019.

On a month-on-month basis, the urban index rose by 0.92 per cent in January 2020, up by 0.02 from 0.90 per cent recorded in December 2019, while the rural index also rose by 0.83 per cent in January 2020, up by 0.01 from the rate recorded in December 2019 at 0.82 per cent.

The NBS report also indicates that the corresponding 12-month year-on-year average percentage change for the urban index is 11.92 per cent in January 2020.

This is higher than 11.83 per cent reported in December 2019, while the corresponding rural inflation rate in January 2020 is 11.04 per cent compared to 11.00 per cent recorded in December 2019.

The composite food index rose by 14.85 per cent in January 2020 compared to 14.67 per cent in December 2019.

This rise in the food index was caused by increases in prices of bread and cereals, meat, oils and fats, potatoes, yam and other tubers and fish.

The “All items less farm produce” or core inflation, which excludes the prices of volatile agricultural produce stood at 9.35 per cent in January 2020, up by 0.02 per cent when compared with 9.33 per cent recorded in December 2019.