Inflation hits 12.20% YoY in February; 0.07% higher than January rate

By Omobayo Azeez

The consumer price index, (CPI), which measures inflation, increased by 12.20 per cent on a year-on-year (YoY) basis in February 2020.

This, according to the latest report by the National Bureau of Statistics, is 0.07 per cent points higher than the rate recorded in January 2020 at 12.13 per cent.

The rise in the rate for February was driven by increases recorded in all the Classification of Individual Consumption According to Purpose (COICOP) divisions that yielded the headline index.

On month-on-month basis, the headline index increased by 0.79 per cent in February 2020. This is 0.08 per cent rate lower than the rate recorded in January when it stood at  0.87 per cent.

The percentage change in the average composite CPI for the 12 months period ending February 2020 over the average of the CPI for the previous 12 months period was 11.54 per cent, showing 0.08 per cent point from 11.46 per cent recorded in January 2020.

The urban inflation rate increased by 12.85 per cent in 12 months in February 2020 from 12.78 per cent recorded in January 2020, while the rural inflation rate increased by 11.61 per cent in February 2020 from 11.54 per cent in January 2020.

On a month-on-month basis, the urban index rose by 0.92 per cent in February, up by 0.10 from 0.82 per cent recorded in January this year.

Similarly, the rural index also rose by 0.76 per cent in last month, down by 0.07 from the rate recorded in January at 0.83 per cent.

NBS, in its latest report indicates significant that the composite food index rate remained high in February as it spikes at 14.90 per cent, rising from 14.85 per cent in January.

This rise in the food index was caused by increases in prices of bread and cereals, fish, meat, vegetables, and oils and fats in the month under review.

On month-on-month basis, the food sub-index increased by 0.87 per cent in February 2020, down by 0.12 per cent points from 0.99 per cent recorded in January 2020.

The average annual rate of change of the food sub-index for the 12-month period ending February 2020 over the previous 12-month average was 13.98 per cent, 0.12  per cent points from the average annual rate of change recorded in January 2020 at 13.86 per cent.