Inflation jumps to three-year high at 11.4%

The Nigerian headline inflation jumped to 11.4 percent in February 2016 from 9.6 percent in January, inching closer to 11.98 recorded in December 2012, the Nigerian Bureau of Statistics (NBS) has confirmed.

According to the NBS report released on Tuesday, inflation rate has risen consistently since October 2015 till date, having its largest leap since President Muhammadu Buhari took power in May.

It is believed that the inflation is driven by the current uncertainties within the Nigerian economy, and the prevailing realities of the current foreign exchange realities.

NBS also said there was an obvious increase in price across almost all major divisions that contribute to the headline inflation.

“In February, the Consumer Price Index (CPI), which measures inflation, recorded a significant uptick. The headline index increased by 11.4% (year-on-year) in February, roughly 1.76% points higher from rates recorded in January (9.6%),” he said.

“The faster pace of increases, which led to the overall increase in the headline index, were recorded across almost all major divisions which contribute to the headline index with the exception of the restaurants and Hotels division which increased, albeit at a slower pace.

“After increasing at the same pace for two months, the pace of increases of food prices as recorded by the Food sub-index increased at faster pace in February. The Food index increased by 11.3%, up by 0.71% points from rates recorded in January.

The NBS also said “the highest price increases were recorded in the fish, vegetables and bread and cereals groups for the second consecutive month”.

“During the month, all major food groups which contribute to the Food sub-index increased at a faster pace during the month with the exception of the Potatoes, Yams and Other Tubers; and Sugar, jam, honey, chocolate and confectionery groups.

“The ‘All Items less Farm Produce’ or Core sub-index increased at a faster pace in February, as imported items as well as other domestic shocks resulted in ripple effects across many divisions that contribute to the Core.”