TUE, FEB 18 2020-theG&BJournal-National Bureau of Statistics data released Tuesday showed that inflation jumped to a 17-month high of 12.13% in January on food prices, while urban inflation rate increased by 12.78 percent (year-on-year) in January 2020 from 12.62 percent recorded in December 2019. Rural inflation rate also rose by 11.54 percent in January 2020 from 11.41 percent in December 2019.
The data raised concerned over the sustainability of the government’s economic recovery plans and underscored the risk posed by inflation, which is often cited by the Central Bank of Nigeria (CBN) after their Monetary Policy Meetings (MPC) for holding rates.
Analysts say the government should be concerned about the food inflation, given the broad based up thick in prices of agricultural produce.
Besides, the broad-based rise in core inflation by 0.02 percent driven by Hospital services, Vehicle spare parts, should be a cause for concern.
On month-on-month basis, the Headline index increased by 0.87 percent in January 2020, this is 0.02 percent rate higher than the rate recorded in December 2019 (0.85) percent.
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 percent, showing 0.06 percent point from 11.40 percent recorded in December 2019.
According to the NBS data, the 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. On month-on-month basis, the food sub-index increased by 0.99 0.97 percent in January 2020, up by 0.02 percent points from 0.97 percent recorded in December 2019.
The average annual rate of change of the Food sub-index for the twelve-month period ending January 2020 over the previous twelve-month average was 13.86 percent, 0.12 percent points from the average annual rate of change recorded in December 2019 (13.74) percent.
Core inflation, which excludes the prices of volatile agricultural produce stood at 9.35 percent in January 2020, up by 0.02 percent when compared with 9.33 percent recorded in December 2019. On month-on-month basis, the core sub-index increased by 0.82 percent in January 2020. This was up by 0.01 percent when compared with 0.81 percent recorded in December 2019.
The highest increases were recorded in prices of Hospital services, Vehicle spare parts, Cleaning, Repair and hire of clothing, Shoes and other footwear, Glassware, tableware and household utensil, Hairdressing saloons and personal grooming establishments, Repair and hire of footwear, Garments and Passenger transport by air.
The average 12-month annual rate of change of the index was 9.11 percent for the twelve-month period ending January 2020; this is 0.04 percent points lower than 9.15 percent recorded in December 2019.
In January 2020, all items inflation on year on year basis was highest in Sokoto (15.20%), Kebbi (14.37%) and Niger (14.23%), while Delta (9.95%), Benue (9.61%) and Kwara (9.49%) recorded the slowest rise in headline Year on Year inflation.
On month on month basis however, January 2020 all items inflation was highest in Ondo (2.17%), Anambra (2.04%) and Bauchi (1.81%), while Benue (0.04%) recorded the slowest rise on month on month inflation with Kogi and River recording price deflation or negative inflation (general decrease in the general price level or negative inflation rate).
In January 2020, food inflation on a year on year basis was highest in Sokoto (19.08%), Ogun (18.72%) and Nasarawa (17.07%), while Bayelsa (12.91%), Delta (11.57%) and Benue (11.33%) recorded the slowest rise.
On month on month basis however, January 2020 food inflation was highest in Ondo (2.95%), Anambra (2.61%) and Abuja (2.57%), while Benue, Kogi and River recorded price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).
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