Lower Commodity Prices Keep Inflation Stable at 9.6%…

Average unofficial price of petrol drops to N109.59/litre

The Consumer Price Index (CPI) which measures inflation remained relatively unchanged at 9.6 per cent in January, same rate as in the previous month, according to the National Bureau of Statistics (NBS).

It stated that though the food and non- alcoholic beverages, clothing and footwear division among others, increased at a faster pace in January relative to December 2015, the headline index was however weighed upon by slower increases in other major divisions including housing, water, electricity, gas and other fuels as well as furnishings and household equipment maintenance.

According to the latest CPI figures released by the statistical agency yesterday, the core sub-index edged marginally higher, increasing by 8.8 per cent in January from 8.7 per cent in December.

It said the highest price increases in January were recorded in the passenger transport by road, and books and stationery groups as a result of the start of the new educational sessions across the country.

“The average 12 month annual rate of rise of the index was recorded at 8.4 per cent for the 12 month period ending in January 2016, 0.2 per cent points higher from the 12 month rate of change recorded in December 2015, it noted.

The urban inflation in the month in review increased by 9.7 per cent (year-on-year), while the rural index also increased marginally for a third consecutive month from 9.4 percent in December to 9.5 per cent in January.

On a month-on-month basis, both the urban and rural indices increased at a slower pace at 0.9 percent in January, marginally lower from 1.0 per cent in December, the NBS further stated.

According to the statistical agency, “Driven in part by increases in imported food prices which rate of change continues to surpass previous years’ highs, the pace of increases in food prices as recorded by the Food Sub-index increased at the same pace for the second consecutive month in January by 10.6 per cent.”

“Year-on-year, the highest price increases were recorded in the fish, vegetables, bread and cereals groups. On a month-onmonth basis, the Food sub-index increased by 0.9 per cent in January, 0.3 per cent points lower from rates recorded in December. All groups which contribute to the Food Sub-index increased at a slower pace, with the exceptions of the bread and cereals and milk, eggs and cheese groups.

“The average annual rate of change of the Food sub-index for the 12-month period ending in January 2016 over the previous 12 month average was 10.0 per cent. This was marginally higher than the average annual rate of change recorded in December; 9.9 per cent.”

Meanwhile, the average monthly price paid by Nigerian households for a litre of petrol across the country increased to dropped to N109.59/litre in January compared to N119.61/litre in December, the NBS stated.

Yet, the official pump price of petrol is between N86 and N86.50 and figures provided showed that on the monthly average, Nigerians have continued to purchase petrol above the official rate in the period under review.

According to the petrol report for January also released by the NBS yesterday, Lagos, Oyo and Ogun States recorded the lowest monthly average price of N91.06, N91.47 and N92.46 respectively.

On the other hand, Ebonyi, Imo and Abia States accounted for the highest monthly average of petrol at N132.14, N131 and N129.33 respectively.

Abuja, Bayelsa and Rivers States recorded monthly averages of N99.60, N96.13 and N102.50 respectively.