ABUJA — The National Bureau of Statistics, NBS, has said the country’s inflation rate stood at 12.6 per cent in January.

A statement issued in Abuja by the NBS said the figure was 2.2 per cent higher than the 10.3 per cent recorded in December. It stated that the monthly change in the Consumer Price Index, CPI, was 3.35 per cent in January, compared to the 1.06 per cent achieved in December.

“The increase in the consumer inflation in January was due to the partial removal of the subsidy on the petrol that pushed up prices of many food and non-food items as a result of the increase in transportation costs,” the statement said.

It said the year-on-year increase in urban and rural areas was 16.4 per cent and 9.4 per cent, respectively, adding that the urban all items monthly index was 5.3 per cent in January against 2.0 per cent in December, while the rural index was 1.8 per cent in January compared with 0.3 per cent in December.

“The inflationary impact of the partial subsidy removal was therefore largely concentrated in the urban areas relative to the rural areas where most Nigerians live. The biggest contributors to the consumer inflation were the high prices of some food items, liquid fuel and transport fares, and other miscellaneous goods and services which need liquid fuel and or transport fares for providing their services,” it said.  The statement said the percentage change in the average composite CPI for the 12 months period ended January 2012 was 10.9 against 10.8 recorded in December.

“The corresponding 12-month year-on-year average percentages change for urban and rural indices were 9.1 and 12.3 respectively. While the impact of the subsidy removal on the CPI was visible and significant, this was tempered by several demand side factors which kept a downward pressure on price increases and prevented them from rising much higher than would have been expected.

It said the All Items Less Farm Produce index, which excluded the prices of volatile agricultural products, increased to 12.7 per cent in January against 10.8 per cent in December. It said that prices and weighting were the two basic parameters used to arrive at the CPI.

The statement said that 10,534 officers were used to collate the data for the CPI monthly, and that 740 product specifications were priced across the rural and urban areas of the 36 states of the federation and the FCT. It said that the average price of each item was computed for each sector for each state and the FCT and used for index computation.

Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.