Inflation rate increases to 17.6%

inflation18 September 2016, Lagos – The National Bureau of Statistics on Friday said that the Consumer Price Index which measures inflation increased year-on-year from 17.1 per cent in July to 17.6 per cent in the month of August.

The bureau in the CPI report for the month of August said the rise was caused by increases in the price of electricity, gas, fuel and housing.

The report stated that both the urban and rural prices continued to rise in the month of August.

For instance, it said the urban index increased to 19.3 per cent (year-on-year) in August from 18.9 per cent recorded in July, while the rural index increased to 16.1 per cent in August from 15.5 per cent in July.

On a month-on-month basis, it added that both urban and rural index increased at a slower pace.

The report read in part, “In August, the CPI which measures inflation increased by 17.6 per cent (year-on-year), 0.5 per cent points higher from the rate recorded in July (17.1 per cent).

“The major divisions responsible for accelerating the pace of the increase in the headline index were housing, water, electricity, gas and other fuel, education and transport services.”

In terms of food index, the report said imported food items as well as other necessary inputs to producing key local staples such as bread continue to drive the food index higher.

For instance, it said the food index increased by 16.4 per cent (year- on-year), indicating 0.6 per cent points higher from rates recorded in July.

The highest price increases for food index were recorded in meat, fish, bread and cereals.

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