A Review of the Nigerian Energy Industry

Fuel scarcity pushes inflation rate to 9.2% – NBS

15 July 2015, Abuja – The National Bureau of Statistics on Tuesday said that the irregular supply of Premium Motor Spirit (petrol) in the country increased the Consumer Price Index, measuring inflation, from nine per cent in May to 9.2 per cent in June.

Fuel consumption

The NBS, in the CPI report, explained that petrol supply side challenges continued to have an adverse impact on food prices.

It noted that in addition to limited PMS supply, the late rains and late harvest had also contributed to the increase in food prices.

Ironically, the NBS said vegetables in particular had become less available as precipitation begins, which increases the upward pressure on the food sub- index.

The report, which was made available to our correspondent, stated that through the first six months of the year, the inflation index increased by 8.6 per cent from rates recorded during the corresponding period in 2014.

It said the faster pace of inflation was as a result of bottlenecks observed during the period, which resulted in major divisions such as food and non-alcoholic beverages and transportation.

On a year-on-year basis, the report stated that all groups that contributed to the food sub-index increased at a faster pace during the reporting period with the exception of oils and fats, and potatoes, yams and tuber groups.

The report stated, “In June, the CPI, which measures inflation, rose to 9.2 per cent (year-on-year), 0.2 percentage points from the 9.0 per cent rate recorded in May.

“The faster pace of the Headline Index was as a result of bottlenecks observed during the period, which resulted in major COICOP Divisions such as food and non-alcoholic beverages and transportation increasing at a faster pace during the period.

“Through the first six months of the year, the Headline Index has increased by 8.6 per cent, 0.7 percentage points higher from rates recorded during the corresponding period in 2014.

“Irregularity of the supply of Premium Motor Spirit continues to impact food prices. The Food Sub- Index rose to 10.0 per cent (year-on- year) in June, up by 0.2 percentage points from 9.8 per cent in May.”

 

– Punch

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