Inflation inches up to 17.1%

Nigeria’s July 2016 inflation rate rose to17.1 per cent, its highest point of since 2005, a significant up tick. Report released by the National Bureau of Statistics (NBS) on Wednesday shows that inflation for the month of July climbed to its highest point since 2005. The continued rise, NBS said represents 0.6 per cent points higher from the rate recorded in the previous month (16.5%).

It stated that the increases were recorded in all COICOP divisions, which contribute to the Headline index reflecting higher prices across the economy. The bureau noted that the pace of the increase in the headline index was however weighed upon by a slower increase in three divisions; health, transport, and recreation and culture divisions.

The report indicated that the onset of the harvest season is yet to have a significant impact on food prices as the Food Sub-index increased by 15.8 per cent (year-on-year) in July, 0.5 per cent points lower from rates recorded in June.

However, it noted that prices  increased at a slower pace across a few groups within the food sub-index namely Milk, Cheese and Eggs; Oils and fats; and fruits. In addition, the NBS report stated that imported foods as reflected by the imported food sub-index increased by 0.4 per cent points from June to 20.5 per cent in July.

The report said, ‘‘Energy and energy related prices continue to be the largest increases reflected in the Core sub-index. In July, the Core sub-index increased by 16.9 per cent during the month, up by 0.7 per cent points from rates recorded in June (16.2%).’’

During the month, NBS noted that the highest increases were seen in the electricity, liquid fuel (kerosene), solid fuels, and “fuels and lubricants for personal transport equipment.

‘‘Month-on-month the Headline index increased albeit, at a slower pace for the second consecutive month in July. The index increased by 1.3 per cent in July, 0.4 per cent points from 1.7 per cent recorded in June. Year on year, both the Urban and rural indices increased at a pace in July for the sixth consecutive month. The urban index increased by 0.8 per cent points from 18.1 per cent in June to 18.9 per cent in July, while the rural index increased by roughly 0.4 per cent points from 15.1 per cent in June to 15.5 per cent in July.