Nigeria inflation rate rises to 8.7 per cent in July – NBS

Dr. Yemi Kale, Statistician General of the Federation 

 The NBS released its most recent statistics.
The National Bureau of Statistics, in its latest report on inflation, said the Consumer Price Index (CPI), which measures inflation, rose by 8.7 per cent (year-on-year) in July 2013. This was 0.3 percentage points higher than the 8.4 per cent rate recorded in June.
The bureau said while changes in the headline index have remained in single digits for the seventh consecutive month, prices edged higher as a result of increases in all twelve Classification of Individual Consumption According to Purpose (COICOP) Divisions. It highlighted that these increases were also exhibited in increases in both the Food and Core sub-indices.
The Core sub-index recorded its largest month-on-month change since the 1.4 per cent change recorded in January due to changes across some non-food sub-divisions. Food Prices as exhibited by the Food Sub-index also continued to edge higher in July. While market began to observe a trickle in of newly harvested crops, their quantities have not been substantial enough to impact prices, the bureau said.
“On a month-on basis, prices rose in July from levels recorded in June albeit at a slightly lower rate. In July, the Headline index increased by 0.54 per cent, marginally lower than the 0.59 per cent recorded in June,” the bureau said. On a month-on-month basis, both the Urban and Rural All-item indices increased, albeit at slightly lower rates compared to rates recorded in June, it added.
The Urban All-items index increased by 0.6 per cent (compared to the 0.7 per cent recorded in June), while the Rural All Items index increased by 0.5 per cent, marginally lower than the 0.54 per cent recorded in June.
The corresponding 12-month year-on- year average percentage change for the urban index was 11.4 per cent, while the corresponding rural index was recorded at 9.1 per cent. For both rates, this was lower than their respective twelve-month average rates for the period ending in June 2013.
Rising Food Index
The composite Food Index increased year-on-year by 10.0 per cent to 148.4 points in July. This was 0.4 percentage points higher than the 9.6 per cent recorded in June.
On a month-on basis, the food sub- index increased by the same rate in July as in June: 0.7 per cent.
“While there have been reports of the beginning of harvests of some crops, for example yam tubers, the impact on total supply chains remain relatively negligible to bring substantial relief to consumers due to tight supplies,” the bureau said.
In July, the highest price increases were recorded in the Meats, Oils and Fats, and Potato, Yams and Other tuber classes. The average annual rate of rise of the food sub-index for the twelve-month period ending in July 2013 was 10.2 per cent when compared with the same period in 2012, 0.2 percentage points lower from the 10.4 per cent recorded for the 12 month average year-on-year change for the period ending in June.
Also in July, the “All items less Farm Produce” or Core index, which excludes the prices of volatile agricultural products, increased by 6.6 per cent year-on-year, up from the 5.5 per cent recorded in June by 1.1 percentage points. On a month- on-month basis, the Core sub index was recorded at 1.2 per cent, an increase by from the rate recorded in June by 0.9 percentage points. The increase in the core sub-index, according to the bureau, was as a result of price increases across various class items including actual and imputed rental prices, liquid fuels (which includes Kerosene), Solid fuels (which includes firewood and charcoal), clothing materials, and non-durable household goods.
- Premiumtimes