Inflation on the increase again, hits all-year high

The Consumer Price Index (CPI), which measures rate of inflation in the Nigerian economy, is on the rise again, moving from 9.6 percent in January to 18.3 in October, 2016

According to the National Bureau of Statistics (NBS), “inflation increased by 18.3 percent (year-on-year) in October 2016, 0.48 percent points higher from the rate recorded in September (17.9 percent)”.

“Increases were recorded across almost all major divisions which contribute to the Headline Index. Communication and restaurants and hotels recorded the slowest pace of growth in October, growing at 5.7 percent and 9.4 percent year-on-year respectively,” NBS said.

Inflation rate was seen as abating, following the Central Bank of Nigeria (CBN)  decision to peg lending rates at 14 percent, in a bid to curb inflation.

According to the NBS, inflation rate rose by 0.48 percentage point from 17.13 percent to 17.61 percent in August, recording the slowest pace in 2016.

The rate was seen as recording a rise in 0.48 percent in August to 0.81 percent in September, and then a 0.83 percent in October.

The inflation rate was driven by increases in housing, water, electricity and the rest of the energy sector.

“The Composite Food Index rose by 17.1 percent in October 2016. The rise in the index was caused by increase in prices of Bread and Cereal, Fish, and Meat.

“The highest increases were seen in Housing, Water, Electricity, Gas and Other Fuels as well as, fuels and lubricants for personal transport equipment and Education.

“The average 12-month annual rate of rise of the index was recorded at 13.76 percent for the twelve-month period ending in October 2016, 0.78 percent points higher from the twelve-month rate of change recorded in September.”