From Isaac Anumihe, Abuja
Nigeria’s inflation rate, which began an upward movement over 10 months ago, has expectedly risen to 13.7 per cent in April 2016, as against the preceeding month’s 12.8 per cent.
Reasons adduced by the National Bureau of Statistics (NBS) for the increase, in its report, yesterday, include electricity rate, kerosene prices, impact of higher petrol prices and vehicle spare parts.
“These items as well as other imported items continued to have ripple effects across many divisions that contribute to the core. The index increased by 13.4 per cent in March, roughly 1.2 per cent points from rates recorded in March,” NBS, said. The bureau also said that food index reflected tighter supplies across most groups that contribute to the sub-index. The sub-index increased by 13.2 per cent in April, up by 0.4 per cent points from rates recorded in March as all major food groups, which contribute to the food sub-index increased at a faster pace driven by higher food prices in fish, bread, cereals and vegetable groups.
On month-on-month, while the headline index increased in April, the index slowed for the second consecutive month but the index increased by 1.6 per cent, in April, 0.6 per cent points from rates recorded in March.
It would be noted that the headline index is made up of the core index and farm produce prices. As processed foods are included in both the core and food sub-indices, this implies that these sub-indices are not mutually-exclusive.
“Year-on-year, both the urban and rural indices recorded marked increases for the third consecutive month in March. The urban index rose by 15.1 per cent, 1.6 per cent points from 13.5 per cent in March. While the rural index increased, upward pressure on prices were relatively less severe in the rural areas as the index increased 12.8 per cent year-on-year, 0.7 per cent points from 12 per cent in March. On a month-on-month basis, while the urban index increased at a faster pace, from 2 per cent in March to 2.2 per cent in April, the rural index increased at a slower pace, from 2.1 per cent in March to 1.4 per cent in April.
“The percentage change in the average composite Consumer Price Index (CPI) for the 12-month period ending in April 2016 over the average of the CPI for the previous 12-month period was 10.2 per cent, higher from 9.8 per cent recorded in February. The corresponding 12-month year-on-year average percentage change for the urban index increased from 9.9 per cent in March to 10.5 per cent in March, while the corresponding rural index also increased from 9.6 per cent in March to 9.9 per cent in April,” NBS said.
CPI measures the average change over time in prices of goods and services consumed by people for day-to-day living. The construction of the CPI combines economic theory, sampling and other statistical techniques using data from other surveys to produce a weighted measure of average price changes in the Nigerian economy.