For the first time in about 15 months, Nigeria’s inflation rate fell as consumer price index (CPI), which measures inflation in the economy, went down in what signals as a recovery in the Nigerian economy.
According to a report released on Tuesday by the National Bureau of Statistics (NBS), the inflation rate dropped from 18.72 percent in January 2017, to 17.78 percent in February 2017.
NBS said: “On a Headline basis, the Consumer Price Index (CPI) which measures inflation increased by 17.78 percent (year-on-year) albeit at a slower pace in February 2017, 0.94 percent points lower from the rate recorded in January (18.72) percent.”
“This represents the first time in 15 months that the headline CPI has declined on year on year basis representing the effects of slower rises in already high food and non food prices and favourable base effects over 2016 prices.”
In the report, the bureau said the country however recorded price increases in “housing, water, electricity, gas and other fuel, education, food and alcoholic beverages, clothing and frontware and transportation services”.
Despite the signs of recovery seen in the core inflation rate, food prices remain on the rise, with a surge in the food index, from 17.82 percent in January to 18.53 percent (year-on-year) in February.
This rise, the report shows, was driven by increases in the prices of bread, cereals, meat, fish, potatoes, yams and other tubers and wine, while the slowest increase in food prices year on year were recorded by soft drinks, coffee, tea and cocoa.
Price movements recorded by All Items less farm produce or Core sub-index rose by 16.00 percent (year-on-year) in February, down by 1.90 per cent points from 17.90 percent recorded in January.