By Peter Olorunnisomo
Inflation has been a rarely talked about indices on national growth. Rather it has be3en more fashionable to look at the nation’s GDP, crude oil prices, foreign exchange reserves, and the exchange rate of the naira to the dollar or pound.
The National Bureau of Statistics (NBS) reported an 8 per cent inflation rate for December 2013. By this, their is a growth of inflation which does not portend well for the domestic economy of the country
The Bureau, in the Consumer Price Index (CPI) released on Tuesday in Abuja, reported that in December, the CPI which measures inflation rose to 8.0 per cent (year-on-year),edging higher by 0.1 percentage points from 7.9 per cent recorded in November.
By its report, prices rose on the back of increases in eight of the 11 non-food divisions which contribute to the core sub-index.
“Increases in these divisions were however offset by slower increases in Alcoholic Beverage, Tobacco and Kola, Housing, Water, Electricity, Gas and Other Fuels, and Transport divisions. As a result, the Core sub-index rose by 7.9 per cent in December, marginally higher from 7.8 per cent recorded in November.
“This is the sixth consecutive month of an increase in the core,” the report stressed.
The Food sub-index, according to the NBS grew at the same rate in December as recorded in November (9.3 per cent).
“Prices increased in major food classes such as Bread and Cereals, Meat, Fish and Dairy classes. Prices rose less, however, in the Potatoes, Yams and Other Tubers, Fruit, Vegetables, and sugar, jam, honey, chocolate and confectionery classes, yielding the unchanged year-on-year rate.”
On a month-on-month basis, the Headline index increased at a faster pace, rising by 0.78 per cent in December, up from 0.72 per cent recorded in November.
This was the highest month-on change throughout 2013.
The Urban composite CPI was recorded at 151.4 points in December, indicating a year-on-year increase of 8.1 per cent, unchanged from rates recorded in November.
In the report, the corresponding Rural National CPI recorded a 7.9 per cent year-on-year change in December; the first uptick recorded in five months.
On a month-on-month basis, the Urban All-items index increased by 0.8 per cent in November, the same rate over the last four months, while the Rural All Items index was recorded at 0.76 per cent, up from 0.68 per cent recorded in November.
The percentage change in the average composite CPI for the 12-month period ending in December 2013 over the average of the CPI for the previous 12-month period was recorded at 8.5 per cent, 0.3 percentage points lower than the average twelve month rate of change of 8.8 per cent recorded in November, and maintaining the decline of the index throughout 2013.
The corresponding 12-month year-on-year average percentage change for the Urban index was 8.8 per cent, while the corresponding Rural index was recorded at 8.4 per cent.
The Food sub-index recorded the same growth rate in December as in November (9.3 per cent year-on-year).
In December, the largest increases were observed in the Soft Drinks, fish and dairy classes. On a month-on-month basis, the Food sub-index recorded its first uptick in three months, increasing marginally by 0.9 per cent in December as compared with 0.8 per cent in November.
