WorldStage Newsonline—Nigeria’s Composite Consumer Price Index, which measures inflation, dropped marginally to 12.8 per cent in July 2012 from 12.9 per cent in June.
But the National Bureau of Statistics (NBS) said in a report on Friday that on a monthly basis, the year-on-year changes in the CPI had generally been higher compared to last year, due to base effects.
It said changes in the index could be partly attributable to increases in the prices of some item classes such as oils and fats, gas, bread and cereals, meats, fish, fruits and other items with relatively smaller weights in the index such as repairs of household appliances, catering services and other miscellaneous services
“A look at the monthly changes over the previous three months reveals that although the CPI has generally risen, its increase has been at a slower rate which suggests that prices may be easing across the economy. For example, the headline index recorded month-on changes of 0.75, 1.15 and 0.24 percent in the months of May, June, and July, respectively. The Food sub-index recorded month-on changes of 1.2, 0.5 and 0.3 percent during the same period, while the “Core” index was recorded at 1.1, 1.0 and 0.1 percent. On a monthly basis, the composite CPI was higher by 0.24 percent when compared with June 2012,” NBS said.
“In July, the urban inflation rate was recorded at 15.6 percent year-on-year while the rural index indicated a 10.7 percent year-on-year increase. The Urban All Items index increased by 0.23 percent month-on-month, while the corresponding Rural index increased by 0.25 percent, when compared with the preceding month.
“The percentage change in the average composite CPI for the twelve-month period ending July 2012 over the average of the CPI for the previous twelve-month period was 11.6 percent. The corresponding 12-month year-on-year average percentage change for urban and rural indices was 11.8 and 11.5 respectively.”
In July, the Composite Food Index increased year-on-year by 12.1 percent to 138.1 points. The index was also higher than levels recorded in June of this year by 0.3 percent. The appreciation in the Food Index was as a result of an increase in the price of oils and fats, vegetables, soft drinks, as well as fruit classes, the latter being a key dietary component during the traditional break of the fast during the period of Ramadan. Also, prices of wheat, flour, and associated by-products partially contributed to the rise in the food index as the import duty on wheat grains and flour increased effectively by 20 percent and 100 percent respectively in July. The average annual rate of rise of the index was 11.0 percent (year-on-year) for the twelve-month period ending July 2012.
ALL ITEMS LESS FARM PRODUCE
The “All items less Farm Produce” index which excludes the prices of volatile agricultural products rose by 15.0 percent year-on-year. On month-on-month basis, the core index increased by 0.1 percent in July 2012. The marginal rise in the Core index is partly attributable to higher price of gas, and other services such as household repairs, catering, and household textiles. The average 12 month annual rate of rise of the index was 13.0 percent for the twelve-month period ending July 2012.