Inflation rises by 8.3%, says NBS

By IAfrica
In Nigeria
Aug 18th, 2014
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The Consumer Price Index (CPI), which measures inflation, rose to 8.3 per cent in July 2014, from 8.2 per cent recorded in June.

This is the fifth consecutive month of year-on-year increases in the headline index.

According to the CPI report released in Abuja yesterday by the National Bureau of Statistics (NBS), the faster pace of price increases recorded in the headline index was as a result of an increase in multiple divisions that contribute to the headline index.

It explained that between February and July, movements in food prices as observed by the Food sub-index have, mirrored the Headline index.

NBS said in a statement, that the Food index edged higher to 9.9 per cent in July from 9.8 per cent in June, explaining that prices were pushed higher as a result of higher prices in the Bread and Cereals, Meats, and Fish groups, while the pace of the increase was weighed upon by slower increases in the Dairy, Sugar, jam, honey, chocolate and confectionery, Coffee, Tea and Cocoa groups.”

After increasing at a faster pace for the previous three months, the report said the pace of price increases measured by the “All items less farm produce” or Core sub-index, eased in July.

The statement reads: “Prices rose by 7.1 per cent (year-on-year), a full percentage point lower from the rate recorded in June. Slower price increases in the Alcoholic Beverages Tobacco and Kola, Clothing and Footwear; Housing Water, Electricity, Gas and Other Fuel; and many other divisions contributed to the muted increases in the Core sub-index.

“On a month on month basis, price increases in the headline index eased for the second consecutive month. Prices increased by 0.65 percent in July, lower from a 0.77 per cent increase in June. The slower price increase of the Headline index in July were driven by a slower rise in all areas that contribute to the index.

Urban prices (year-on-year) increased as a faster pace for the third consecutive month in July.

“Prices edged higher to 8.5 per cent, up 0.1 percentage points from June. Rural prices have exhibited the same trend over the period, increasing by 8.1 per cent from 8.0 per cent in June.

“On a month-on-month basis, the pace of increases in Urban prices eased in July, after advancing faster for two consecutive months. Urban Headline index increased by 0.70 per cent, 0.1 percentage points lower from June.

The Rural All-items index rose at a slower pace by 0.60 percent in July, down from 0.74 percent in June.

“The percentage change in the average composite CPI for the twelve-month period ending in July 2014 over the average of the CPI for the previous twelve-month period was recorded at 8.0 percent, unchanged from the average twelve month rate of change recorded in June 2014. The corresponding 12-month year-on-year average percentage change for the Urban index was 8.1 percent in July, unchanged in the previous month while the corresponding Rural index eased to 7.8 per cent for the Month of July.

“As observed by the Food sub-index, food prices increased by 9.9 per cent (year-on-year) in July, marginally higher from 9.8 percent recorded in June. This is the highest price increased observed in a year, and an advancement in the pace of price increases for the fifth consecutive month. During the month, increases in Fruit, Vegetables, and Potatoes, Yam & Other Tubers groups contributed to the price increases.”

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