The rate at which prices of goods and services are rising generally in Nigeria dropped further to 11.37 per cent in February at the heat of the 2019 election. This is coming on the heels of Central Bank of Nigeria CBN’s effective monetary policy that has continuously mop up excess liquidity in the system.
The Godwin Emefiele led CBN had embarked on tight monetary policy and introduced measures to boost domestic production as well as ensure that goods that can be produced locally are encouraged to thrive by placing some products under restriction of access to official foreign exchange market.
National Bureau of Statistics in its inflation report for February said “February’s food inflation rose 13.47 per cent year-on-year, versus January’s growth of 13.51 per cent. The consumer price index, (CPI) which measures inflation increased by 11.31 per cent in February 2019. This is 0.06 percent points lower than the rate recorded in January 2019, 11.37 per cent. Increases were recorded in all COICOP divisions that yielded the Headline index. On month-on-month basis, the Headline index increased by 0.73 percent in February 2019, this is 0.01 percent rate lower than the rate recorded in January 2019 (0.74) per cent. The percentage change in the average composite CPI for the twelve months period ending February 2019 over the average of the CPI for the previous twelve months period was 11.56 per cent, showing 0.24 per cent point from 11.80 per cent recorded in January 2019.
“The urban inflation rate increased by 11.59 per cent in February 2019 from 11.66 per cent recorded in January 2019, while the rural inflation rate increased by 11.05 per cent in February 2019 from 11.11 per cent in January 2019. The composite food index rose by 13.47 per cent in February 2019 compared to 13.51 percent in January 2019. This rise in the food index was caused by increases in prices of Fish, Bread and cereals, Potatoes, yam and other tubers, Meat, Vegetables, Oil sand fat sand Fruits On month-on-month basis, the food sub-index increased by 0.82 percent in February 2019, down by 0.01 percent points from 0.83 percent recorded in January 2019. The average annual rate of change of the Food sub-index for the twelve-month period ending February 2019 over the previous twelve-month average was 13.62 percent, 0.31 per cent points from the average annual rate of change recorded in January 2019 (13.93) percent.
The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 9.8 per cent in February 2019, down by 0.1 per cent when compared with 9.9 per cent recorded in January 2019. On month-on-month basis, the core sub-index increased by 0.65 per cent in February 2019. This was down by 0.16 percent when compared with 0.81 percent recorded in January 2019. The highest increases were recorded in prices of Tobacco, repair and hire of footwear, Major household appliances, Domestic services and household services, Dental services, Medical and hospital services, Cleaning, repair and hire of clothing. The average 12-month annual rate of change of the index was 10.19 percent for the twelve-month period ending February 2019; this is 0.15 percent points lower than 10.34 percent recorded in January 2019.
In February 2019, all items inflation on year on year basis was highest in Kebbi (13.78%),Taraba (13.57%) and Kaduna (13.54%), while Cross River (9.81%) Delta (9.60%) and Kwara(9.36%) recorded the slowest rise in headline Year on Year inflation.
“On month on month basis however, February 2019 all items inflation was highest in Taraba (1.87%),Ogun (1.83%), and Imo (1.62%), while Jigawa recorded the slowest rise (0.13%), with Delta and Kogi recording negative inflation or price deflation (general decrease in the general price level of goods and services or a negative inflation rate) in February 2019. In February 2019, food inflation on a year on year basis was highest in Nasarawa (16.78%), Taraba (16.76%) and Abuja (16.29%), while Kogi (11.68%), Delta (11.51%) and Abia (10.81%) recorded the slowest rise in food inflation. On month on month basis however, February 2019 food inflation was highest in Taraba (2.95%), Ogun (2.73%) and Nasarawa (2.42%), while Benue, Delta, Kogi and Ondo all recorded food price deflation or negative inflation (general decrease in the general price level of goods and services or a negative inflation rate) in February 2019”.
