CBN keeps up battle against inflation, retains key interest rate at 11-year high.

The Central Bank of Nigeria (CBN) monetary policy committee (MPC) on Tuesday, sustained all monetary policies parameters, in a bid to keep up the battle against inflation.

MPC said inflation was down, year-on-year, but the food index rose in February from figures recorded in January, mounting pressure on consumers.

Godwin Emefiele, governor of the bank, announced that the committee decided to keep key interest rate at 14 percent, while cash reserve ratio (CRR) and liquidity ratio were held at 22.5 percent and 30 percent respectively.

He said the nine of 10 members present at the meeting decided unanimously to keep the asymmetric corridor at +200 and +500 basis points.

“Headline inflation however declined for the first time in 15 months, dropping by 0.94 percent to 17.78 percent in February from the 18.72 percent recorded in January 2017 and 18.55 percent in December 2016, seemingly a reverse in the monthly upward momentum recorded since January 2016,” he said

“The moderation in headline inflation in February 2017, reflected base effects as well as decline in the core component from 17.9 percent in January to 16.0 percent in February 2017.

“The food index however rose to 18.53 percent in February, a 0.71 percent point increase from the 17.87 percent recorded in January, 2017.  Committee similarly observed a continuous upward trend in the month on month inflation rate.

“It noted the sustenance on the structural factors mounting pressure on consumer prices, such as high cost of power and energy, transport and production factors, as well as rise in prices of  imports.”

Emefiele said the committee noted that monetary policies aimed at boosting agriculture and driving down prices of food in the short term, are to be sustained.

The committee asked that the federal government carry out a speedy implementation of the Economic Recovery and Growth Plan.

“The committee remains optimistic that if properly implemented, the newly released economic recovery and growth plan coupled with innovative growth sectoral stimulation policies, would help fast-track economic recovery,” Emefiele said.

The monetary policy committee (MPC) concluded that the era of high oil prices is gone, and it has become more imperative for government to diversify the economy away from oil.

 

Source: The Cable

Inflation rate falls for the first time in 15 months as Nigeria’s economy recovers.

For the first time since 2015, consumer price index (CPI), which measures inflation in the economy, fell, signalling a recovery in the Nigerian economy.

According to the National Bureau of Statistics (NBS), the inflation rate dropped from 18.72 percent in January 2017, to 17.78 percent in February 2017.

“On a Headline basis, the Consumer Price Index (CPI) which measures inflation increased by 17.78 percent (year-on-year) albeit at a slower pace in February 2017, 0.94 percent points lower from the rate recorded in January (18.72) percent,” NBS said on Tuesday.

“This represents the first time in 15 months that the headline CPI has declined on year on year basis representing the effects of slower rises in already high food and non food prices and favourable base effects over 2016 prices.”

The country however recorded price increases in “housing, water, electricity, gas and other fuel, education, food and alcoholic beverages, clothing and frontware and transportation services”.

Despite the signs of recovery seen in the core inflation rate, food prices remain on the rise, with a surge in the food index, from 17.82 percent in January to 18.53 percent (year-on-year) in February.

The increase was driven by “increases in the prices of bread, cereals, meat, fish, potatoes, yams and other tubers and wine, while the slowest increase in food prices year-on-year were recorded by Soft Drinks, Coffee, Tea and Cocoa”.

Despite the fall, inflation rate remains at one of the highest points since Olusegun Obasanjo’s era as the Nigerian President.

 

Source: The Cable

Nigeria’s inflation rate increases, hits 18.72 per cent.

From 18.55 per cent in December 2016, Nigeria’s inflation rate increased to 18.72 per cent in January 2017, the National Bureau of Statistics, NBS, has said.

According to the Bureau, the Consumer Price Index, CPI, which measures inflation increased by 18.72 per cent (year-on-year) in January 2017, 0.17 percentage points higher from the rate recorded in December; and increases were recorded in all divisions that yield the Headline Index.

The report, released by the NBS on Wednesday, stated that communication and restaurants and hotels again recorded the slowest pace of growth in January, growing at 5.1 per cent and 8.4 per cent (year-on-year) respectively.

The NBS, however, said that the faster pace of growth in headline inflation, year on year, were bread and cereals; meat, fish, oils and fats; potatoes, yams and other tubers; wine and spirits: clothing materials and accessories. Others are electricity, cooking gas, liquid and solid fuels; motor cars and maintenance; vehicle spare parts and fuels; and lubricants for personal transport equipment as well as passenger transport by road.

According to the report, on a month-on-month basis, headline inflation was driven by passenger transport by air, fuels and lubricants for personal transport equipment; liquid fuels, cooking gas, oils and fats; fruits, cheese and eggs; fish, meat and bread; as well as cereals.

The report noted that the Food index increased by 17.82 per cent (year-on-year) in January, up by 0.43 per cent points from rate recorded in December 2016 (17.39) percent. During the month, all major food sub-indexes increased, with soft drinks recording the slowest pace of increase at 7.8 per cent(year on year).

During the month, the highest increases were seen in housing, water, electricity, gas and other fuels, with education and transport growing at 27.2, 21.0 and 17.2 per cent respectively.

On a month-on-month basis, the Headline index increased although at a slower pace in January 2017. The index increased by 1.01 per cent point in January, 0.05 per cent points from 1.06 per cent rate recorded in December 2016.

The Urban index rose by 20.31 per cent (year-on-year) in January from 20.12 per cent recorded in December, and the Rural index increased by 17.34 per cent in January from 17.20 per cent in December.

On month-on-month basis, the Urban index rose by 1.03 per cent in January from 1.08 per cent recorded in December, while the rural index rose by 1.00 per cent in January from 1.04 per cent in December.

The corresponding twelve-month year-on-year average percentage change for the Urban index, the report said, increased from 17.05 percent in December to 17.91 per cent in January, while the corresponding rural index also increased from 14.54 per cent in December to 15.18 per cent in January.

According to the NBS, the Composite Food Index rose by 17.82 per cent in January 2017. The rise in the index, the bureau said, was mainly driven by increases in prices of bread and cereals, meat, oil and fats, and fish.

On a month-on-month basis, the Food sub-index increased by 1.29 per cent in January, down by 0.04 per cent points from 1.33 per cent recorded in December.

Meanwhile, the ”All Items Less Farm Produce” or Core sub-index, which excludes the prices of volatile agricultural produce eased by 17.9 per cent during the month, 0.20 per cent points from 18.1 per cent recorded in December as all key divisions which contributes to the index increased.

Also on a month-on-month basis, the Core sub-index increased by 0.68 per cent in January, 0.06 per cent points higher from 0.62 per cent recorded in December. The highest increases were recorded in electricity, gas, passenger transport by air, liquid fuel, fuel and lubricants for personal transport equipment and solid fuels.

PREMIUM TIMES reports that the NBS said Nigeria’s inflation rate increased from 9.6 per cent recorded in December 2015 to 18.55 per cent in December 2016, as a result of sharp increase in the prices of meat, bread, fish, vegetable, and other products.

Rising Bread, Power, Meat Prices Push Inflation To 18.3%

The inflation rate, which began its upward streak over one year ago, has again accelerated to 18.3 per cent (year-on-year) in October 2016, with 0.48 per cent points higher from the rate recorded in September of the same year (17.9 per cent).

The  report released by the National Bureau of Statistics (NBS) yesterday said that food index was the major contributory factor as it rose by 17.1 per cent (year-on-year) in October, up by 0.47 per cent points from 16.6 per cent recorded in September.

During the month, all major food groups, which contribute to the food sub-index increased with fruits recording the slowest pace of increase at 11.5 per cent.

Also, it said price movements recorded by the all items less farm produce or core sub-index rose by 18.1 per cent (year-on-year) in October, up by 0.4 per cent points from rates recorded in September (17.7 per cent).

Also in  the month, the report noted, the highest increases were seen in housing, water, electricity, gas and other fuels as well as fuels and lubricants for personal transport equipment and education.

“Significant price movement under the Core Sub-index was also recorded for clothing and footwear, which recorded an increase of 17.8 per cent year-on-year. The groups with least growth pace recorded in October were communication (5.7 per cent), restaurants and hotels (9.4 per cent) and recreation and culture (10.3 per cent),” the report said.

It should be 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.

Also,  on a month-on-month basis, the headline index rose by 0.83 per cent in October, higher from the rate recorded in September (0.81 per cent). The urban index rose by 19.9 per cent (year-on-year) in October from 19.5 per cent recorded in September, and the rural index increased by 16.95 per cent in October from 16.4 per cent in September.

On month-on-month basis, the urban index rose by 0.81 per cent in October from 0.79 per cent recorded in September, while the rural index rose by 0.84 per cent in October from 0.83 per cent in September.

“The percentage change in the average composite CPI for the 12-month period ending in October 2016 over the average of the CPI for the previous 12-month period was 14.2 per cent, higher from 13.5 per cent recorded in September. The corresponding 12-month year-on-year average percentage change for the urban index increased from 14.4 per cent in September to 15.3 per cent in October, while the corresponding rural index also increased from 12.6 per cent in September to 13.3 per cent in October,” the report further explained.

Credit:

http://sunnewsonline.com/rising-bread-power-meat-prices-push-inflation-to-18-3/

Food, Energy Prices, Imported Items Push Inflation Further To 16.5%

The Consumer Price Index (CPI), which measures inflation, rose by 0.9 percent to 16.5 per cent in June compared to 15.6 percent in May, according to the National Bureau of Statistics (NBS).

This is the fifth consecutive month that the headline index would increase relatively strong.

The increase in the month under review was attributed to energy prices, imported items and related products which continued to be persistent drivers of the core sub-index.

According to the CPI figures for June, which was released on Monday by the statistical agency,  the highest price increases were noticed in the electricity, liquid fuel (kerosene), furniture and furnishings, passenger transport by road, and fuels and lubricants for personal transport equipment.

Credit: Thisday

Inflation Rises To 12.8 Per Cent

The currency curbs introduced by the Muhammadu Buhari administration, coupled with fuel scarcity, have contributed to the increase in the Consumer Price Index (CPI), which measures inflation, to 12.8 per cent in March, compared to 11.4 per cent in February and 9.6 per cent in January, the National Bureau of Statistics (NBS) stated on Tuesday.

It blamed the 1.4 per cent rise in the headline index on an increase in the prices of goods and services across the country, the highest year-on-year rise since July 2012.

The NBS stated that the planting season, transportation costs, as well as foreign exchange movements created significant upward pressure on the food index in March.

It further stated that the knock on effect of foreign exchange movements, which have in turn affected the prices of imported food and non-food items, the importation of petrol as well as the adjustment in the electricity tariffs nationwide resulted in a surge of rates.

According to the CPI figures for March released by the statistical agency yesterday, the food index increased by 1.4 per cent to 12.7 per cent compared to what was recorded in February.

It added that all major food groups that contribute to the food sub-index increased at a faster pace while imported items as well as other domestic shocks continued to have ripple effects across many divisions that contribute to the core index which increased by 1.1 per cent to 12.2 per cent in March.

Credit: Thisday