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Headline Inflation Drops to 14.33% in February 2018; 0.8% Lower Than January 2018 Rate

Nigeria Economy	6554 VIEWS
Nigeria Economy
6554 VIEWS

Wednesday, March 14, 2018 /09:00 AM / NBS

All Item Index

The Consumer Price Index (CPI) which measures inflation increased by 14.33 percent (year-on-year) in February 2018. This thirteenth consecutive disinflation since January 2017 is 0.8 percent points less than the rate recorded in January 2018 (15.13) percent. Increases were recorded in all COICOP divisions that yield the Headline Index.

On a month-on-month basis, the Headline index increased by 0.79 percent in February 2018, down by 0.01 percent points from the rate recorded in January.The percentage change in the average composite CPI for the twelve month period ending February 2018 over the average of the CPI for the previous twelve month period was 15.93 percent, showing 0.29 percent point lower from 16.22 percent recorded in January 2018.

The Food Index increased by 17.59 percent (year-on-year) in February, down by 1.33 percent points from rate recorded in January 2018 (18.92) percent. During the month, all major food sub-indexes increased. Price movements recorded by All Items less farm produce or Core sub-index increased by 11.7 percent (year-on-year) in February 2018, down by 0.4 percent points from the rate recorded in January (12.10) percent.

During the month, the highest increases were seen in prices of Fuel and lubricants for personal transport equipment, Maintenance and repair of personal transport equipment, Narcotics, Vehicle spare parts, Passenger transport by air, Clearing, repair and hire of clothing, Hospital services, Domestic services and household services and Glassware, tableware and household utensils.

The Urban inflation rate rose by 14.76 percent (year-on-year) in February 2018 from 15.56 percent recorded in January, while the Rural inflation rate also eased by 13.96 percent in February 2018 from 14.76 percent in January. On month-on-month basis, the urban index rose by 0.82 percent in February 2018, down by 0.01 from 0.83 percent recorded in January, while the rural index also rose by 0.77 percent in February 2018, showing no difference with the rate recorded in January.

The corresponding twelve month year-on-year average percentage change for the urban index is 16.24 percent in February 2018. This is less than 16.55 percent reported in January, while the corresponding rural inflation rate in February 2018 is 15.64 percent compared to 15.89 percent recorded in January.

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Food Index

The Composite Food Index rose by 17.59 percent in February 2018. The rise in the index was caused by increases in prices of Bread and cereals, Milk, cheese and egg, Potatoes, yam and other tubers, Fish and Vegetables, Coffee, tea and cocoa.

On a month-on-month basis, the Food sub-index increased by 0.85 percent in February 2018, down by 0.02 percent points from 0.87 percent recorded in January.

The average annual rate of change of the Food sub-index for the twelve-month period ending February 2018 over the previous twelve month average was 19.52 percent, 0.1 percent points from the average annual rate of change recorded in January (19.62) percent.

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All Items Less Farm Produce
The ‘’All Items less Farm Produce’’ or Core inflation, which excludes the prices of volatile agricultural produce is 11.7 percent in February 2018, down by 0.4 percent points from the rate recorded in January (12.10) percent.

On a month-on-month basis, the Core sub-index increased by 0.75 percent in February 2018, this was up by 0.07 percent when compared with 0.68 percent recorded in January.

The highest increases were recorded in prices of Fuel and lubricants for personal transport equipment, Maintenance and repair of personal transport equipment, Narcotics, Vehicle spare parts, Passenger transport by air, Clearing, repair and hire of clothing, Hospital services, Domestic services and household services and Glassware, tableware and household utensils.

The average 12 month annual rate of change of the index was 12.67 percent for the twelve-month period ending February 2018; this is 0.34 percent points lower than 13.01 percent recorded in January.

State Profiles
In analyzing price movements under this section, note that the CPI is weighted by consumption expenditure patterns which differ across States. Accordingly, the weight assigned to a particular food or non-food item may differ from State to State making inter State comparisons of consumption basket inadvisable and potentially misleading

All Items Inflation
In February 2018, all items inflation on a year on year basis was highest in Kebbi (18.60%), Bauchi (17.68%) and Yobe (17.65%), while Delta (11.74%), Edo (12.33%) and Kogi (12.74%) recorded the slowest rise in headline Year on Year inflation.

On a month on month basis however, February 2018 all items inflation was highest in Kebbi (1.90%), Yobe (1.72%) and Rivers (1.58%), while Ebonyi and Nasarawa recorded price deflation on a month on month all item basis in February 2018

Food Inflation
In February 2018, food inflation on a year on year basis was highest in Kwara (23.52%), Yobe (22.37%)and Kebbi (21.82%), while Bauchi (12.82%), Anambra (13.53%) and Benue (13.83%) recorded the slowest rise in food inflation.

On a month on month basis however, February 2018 food inflation was highest in Kebbi (2.58%), Yobe (2.07%) and Niger (1.94%), while Abuja, Ebonyi. Enugu, Kogi Nasarawa, Plateau and Taraba all recorded food price deflation or negative inflation (general decrease in the general price level of goods and services or a negative inflation rate) in February 2018.

Click Here to Download February 2018 CPI PDF Report