Nigeria: Inflation rate increases by 0.24%

*Inflation rate.

*Inflation rate.

Kunle Kalejaye

16 October 2016, Sweetcrude, Lagos —
In September, the Consumer Price Index, CPI which measures inflation increased by 17.9 percent (year-on-year), 0.24 percentage points higher than the rate recorded in August 2016 (17.6 percent).

Increases were recorded in all COICOP divisions which contribute to the Headline Index. Communication and Restaurants and Hotels recorded the lowest rates of increase of the 12 divisions, growing by 5.6 percent and 9.6 percent respectively.

The Food Sub-Index increased by 16.6 percent (year-on-year) in September, up by 0.19 percent points from rate recorded in August (16.4 percent). A number of groups within the food index recorded falls in the rate of price increases, including Fish, which had previously been a key driver, as well as Oils and Fats, and Fruits.

Price movements recorded by the All Items less farm produce or Core sub-index increased by 17.7 percent (year-on-year) in September, up by 0.5 percent points from rates recorded in August (17.2 percent).

During the month, the highest increases were seen in Clothing materials, other articles of clothing and clothing accessories, Garments, Shoes and other footwear, Books and stationeries, Jewellery, clocks and watches, and Motorcycles.

Energy and energy-related prices continue to be the largest increases reflected in the Core sub-index. In September, the Core sub-index increased by 17.7% during the month, up by 0.5% points from rates recorded in August (17.2%).

During the month, the highest increases were seen in the Electricity, Liquid Fuel (kerosene), Solid Fuels, and Fuels and Lubricants for Personal Transport Equipment groups.

It should be noted that the Headline Index is made up of the Core Index and Farm Produce items. As. Processed Foods are included in both the Core and Food sub-indices; this Implies that these subindices are not mutually-exclusive.

On a month-on-month basis, the Headline index eased, increasing by 0.8 percent in September, down from 1.0 percent in August. The Urban Index rose by 19.5 percent (year-on-year) in September from 19.3 percent recorded in August and the Rural Index increased by 16.4 percent in September from 16.1 percent in August. On a month on month basis, both the Urban and Rural Index eased, increasing by 0.8 percent a piece.

The change in the average composite CPI for the twelve-month period ending in September 2016 over the average of the CPI for the previous twelve month period was 13.5 percent, higher from 12.7 percent recorded in August.

The corresponding twelve-month year-on-year average percentage change for the urban index increased from 13.6 percent in August to 14.4 percent in September, while the corresponding rural index also increased from 12.0 percent in August to 12.6 percent in September.

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