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Inflation worsens as food prices hit record high

Inflation worsens as food prices hit record high
December 14
07:59 2015

Consumer Price Index (CPI), which measures inflation in Nigeria, dropped for the first time in 11 months in October, only to rise again due to fuel scarcity, driving food prices to record high.

In a report by the National Bureau of Statistics (NBS), the headline inflation rose as a result of expensive transportation, emanating from lack of premium motor spirit (PMS) by commuters.

“After a brief respite in October, the Consumer Price Index (CPI) which measures inflation inched higher in November,” the NBS said in its November issue of CPI.

“The headline index increased by 9.4 percent (year-on-year), marginally higher from the rate recorded in October (9.3%).

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“The index was driven in part by higher prices within the food and non-alcoholic beverages division as well as increases in the transportation division as a result of shortages in premium motor spirit (PMS) coupled with the knock-on effect impacting transportation of people and goods across the country.”

Effect on Christmas

The report, released on Sunday, shows that there were relatively slow increases on Christmas items, such as clothing and footwear, while food items hit an all-year-high.

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“The core sub-index was weighted upon by slower increases in multiple divisions such as clothing and footwear; housing water, electricity, gas and other fuels.

“All indices which contribute to the Headline index increased at a faster pace (month-on-month) in November with the exception being the Education division.

“Food prices as observed by the food sub-index increased to the highest rate recorded this year.

“Prices increased by 10.3% (year-on-year) in November, 0.2% points higher from rates recorded in October. The index was pushed higher as a result of faster increases in the fish, bread and cereals; vegetable and meat groups.

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“On a month-on-month basis, the food sub-index increased by 0.8% from October, after a relative moderation in rates for the previous three months”.

Inflation for November 2014 stood at 7.9 percent.

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