Inflation rate climb to 7.9 per cent in April

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By Emmanuel Elebeke
Abuja – A release by National Bureau of Statistics, NBS yesterday showed that the Consumer Price Index, CPI which measures inflation rose by 7.9 percent in April as against 7.8 per cent recorded in March.

The 0.1 per cent increase according to NBS was traceable to the higher food prices as well as divisions which contribute to the Core sub-index.

Photo: toonpool

Photo: toonpool

The NBS, in the release said, food prices in the period under review continued to be relatively stable year on year, moving in a 0.2 percentage point band between 9.2 percent and 9.4 percent over the last eight months.

“In April, specifically, food prices rose slightly by 9.4 percent year on year, as a result of higher prices in the Bread and Cereals, Meat, Fish, dairy, Oils and fats, and Fruits classes.

“Prices in the food sub-index were however weighed down by relatively slower increases in the Vegetables, Potatoes, and Yams and other tubers; and Sugar, jam, honey, chocolate and confectionery classes. The relatively slower growth in the afore-mentioned classes has been observed over the last there months.

“After moving at a slower pace in March, prices measured by the Core sub-index increased at a faster rate in April. Prices rose by 7.5 percent year-on-year, 0.7 percentage points higher than the year-on-year rate recorded in March (6.8 percent),’’ said NBS.

This it said was as a result of higher increases in classes belonging to the Housing Water, Electricity, Gas and Other Fuel; Alcoholic Beverages, Tobacco and Kola; and Restaurants and Hotels Divisions amongst others.

It noted that the headline index is made up of the core index and farm produce items. As Processed Foods are included in both the core and food sub-indices, this implies that these sub -indices are not mutually -exclusive.

On a monthly basis, the report showed that prices weakened in April after an uptick in March. Prices increased by 0.62 percent in April, lower than rates recorded in March by roughly 0.2 percentage points.

“Food prices also moved in the same pattern, easing in April, while monthly core prices firmed at 0.4 percent over the previous two months. Urban prices increased at the same rate in April relative to March. Prices increased by 7.9 percent (year-on-year).

Similarly, NBS disclosed that the pace of increase in rural prices continued to weaken as prices increased at a slower rate for the fourth month consecutively.
“In April, prices rose by 7.5 per cent year-on-year, marginally lower than price increase recorded in March by 0.1 percentage points. On a monthly basis, price increases subsided in both urban and rural areas.

“The Urban All-items index eased by 0.2 percentage points to 0.6 percent in April and the Rural All Items index also eased at the same pace of 0.2 percentage points from 0.81 percent in March to 0.59 in April.

“The percentage change in the average composite CPI for the twelve-month period ending in April 2014 over the average of the CPI for the previous twelve-month period was recorded at 8.1 percent, marginally lower from the 8.2 percent average twelve month rate of change recorded in March 2014.

“The corresponding 12-month year-on-year average percentage change for the urban index was 8.2 percent, while the corresponding rural index was recorded at 8.0 percent,” said NBS.

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