Home News Headline inflation surges for the sixth consecutive month to 12.20% in January

Headline inflation surges for the sixth consecutive month to 12.20% in January

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MON, MARCH 16 2020-theG&BJournal- The consumer price index, gauge of  headline inflation increased by 12.20 percent (year-on-year) in February 2020, the sixth consecutive month of increase, and the fastest pace of consumer price growth witnessed since April 2018.

According to the latest data published Tuesday by the National Bureau of Statistics (NBS), the spike is 0.07 percent points higher than the rate recorded in January 2020 (12.13) percent.

On month-on-month basis, the Headline index increased by 0.79 percent in February 2020, 0.08 percent point from 11.46 percent recorded in January 2020.

The urban inflation rate increased by 12.85 percent (year-on-year) in February 2020 from 12.78 percent recorded in January 2020, while the rural inflation rate increased by 11.61 percent in February 2020 from 11.54 percent in January 2020.

On a month-on-month basis, the urban index rose by 0.82 percent in February 2020, up by 0.10 from 0.92 percent recorded in January 2020, while the rural index also rose by 0.76 percent in February 2020, down by 0.07 from the rate recorded in January 2020 (0.83) percent.

The corresponding twelve-month year-on-year average percentage change for the urban index is 12.03 percent in February 2020. This is higher than 11.92 percent reported in January 2020, while the corresponding rural inflation rate in February 2020 is 11.09 percent compared to 11.04 percent recorded in January 2020.

The composite food index rose by 14.90 percent in February 2020 compared to 14.85 percent in January 2020, driven by increases in prices of Bread and Cereals, Fish, Meat, Vegetables, and Oils and fats.

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

The average annual rate of change of the Food sub-index for the twelve-month period ending February 2020 over the previous twelve-month average was 13.98 percent, 0.12 percent points from the average annual rate of change recorded in January 2020 (13.86) percent.

Core inflation, which excludes the prices of volatile agricultural produce stood at 9.43 percent in February 2020, up by 0.08 percent when compared with 9.35 percent recorded in January 2020.

On month-on-month basis, the core sub-index increased by 0.73 percent in February 2020. This was down by 0.09 percent when compared with 0.82 percent recorded in January 2020.

The highest increases were recorded in prices of Pharmaceutical products, Non-durable household goods, Catering services, Passenger transport by air, Repair of furniture, Maintenance and repair of personal transport equipment, Water supply, carpet and other floor coverings, Major household appliances, Dental services, Hospital services and Vehicle spare parts.

The average 12-month annual rate of change of the index was 9.09 percent for the twelve-month period ending February 2020; this is 0.02 percent points lower than 9.11 percent recorded in January 2020.

In February 2020, all items inflation on year on year basis was highest in Bauchi (14.47%), Niger (14.06%) and Plateau (13.98%), while Borno (10.46%), Abuja (9.68%) and Kwara (9.59%) recorded the slowest rise in headline Year on Year inflation.

On month on month basis however, February 2020 all items inflation was highest in Kano (1.59%), Benue (1.55%) and Taraba (1.53%), while Ondo, Ogun, Nasarawa, Kebbi, Bauchi, Anambra all recorded price deflation or negative inflation (general decrease in the general price level or negative inflation rate).

In February 2020, food inflation on a year on year basis was highest in Sokoto (17.12%), Plateau (16.99%) and Gombe (16.96%), while Nasarawa (13.50%), Bauchi /Katsina (13.04%) and Bayelsa (11.89%) recorded the slowest rise.

On month on month basis however, February 2020 food inflation was highest in Benue (2.38%), Osun (2.36%) and Rivers (1.77%), while Abuja, Anambra, Bauchi, Bayelsa, Katsina, Kebbi, Nasarawa, Ogun and Ondo all 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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