Inflation defies CBN, rises to three-year high

Nigeria’s consumer price index, which measures inflation, rose to its highest since December 2012, at 9.55 percent year-on-year against predictions by the Central Bank of Nigeria.

The Apex bank had predicted early in 2015 that the nation’s inflation would range from six to nine percent in 2015.

According to the Nigerian Bureau of Statistics (NBS), the inflation rose significantly due to pressure on food prices.

In its December 2015 report released on Sunday, the NBS said the “pace of increases recorded by Consumer Price Index (CPI), which measures inflation, increased for the second consecutive month”.

“The Headline index increased by 9.6% (year-on-year), 0.2% points higher from rates recorded in November,” NBS said.

“The increase in the Headline index was driven in part by higher prices within key divisions which contribute to the index.

“In particular, imported food items within the Food & Non Alcoholic Beverages Divisions; Alcoholic Beverage, Tobacco and Kola; Clothing and Footwear and Transportation (as a result of intermittent PMS supply shortages) divisions all impacted the index.”

According to the report food prices were on the increase, with the exception of milk, cheese and eggs.

“Food prices recorded significant pressures in December. The Food sub-index increased to 10.6% (yearon-year) during the month, 0.3% points from rates recorded in November.

“All major food groups which contribute to the Food subindex increased at a faster pace during the month with the exception of the Milk, Cheese and Eggs group.

“All groups, which contribute to the Food Sub-index increased at a higher pace, with the highest rises recorded in the Fish, Vegetables; Potatoes, Yams & Other Tubers, and Fruit groups.”

The inflation rate in December 2014 stood at 7.98 percent, against 9.55, about 12 months later.

Diamond Bank analysts say the inflation for 2016 would hit double digits.