Higher Food Prices Push Inflation to 12.13%


By James Emejo

The Consumer Price Index (CPI), which measures inflation, increased to 12.13 per cent (year-on-year) in January compared to 11.98 per cent in the preceding month, according to the Bureau of Statistics (NBS).

The composite food index rose to 14.85 per cent in January compared to 14.67 per cent in December 2019 while core inflation, which excludes the prices of volatile agricultural produce, also increased to 9.35 per cent during the review period up by 0.02 per cent when compared with 9.33 per cent recorded in December.

According to the CPI report for December, the rise in the food index was caused by increases in prices of bread and cereals, meat, oils and fats, potatoes, yam and other tubers and fish.

Furthermore, in the core sub index, the highest increases were recorded in prices of hospital services, vehicle spare parts, cleaning, repair and hire of clothing, shoes and other footwear, glassware, tableware and household utensils, hairdressing salons and personal grooming establishments, repair and hire of footwear, garments and passenger transport by air.

The urban inflation rate increased to 12.78 per cent (year-on-year) in January from 12.62 per cent in December 2019, while the rural index also rose 11.54 per cent in January from 11.41 per cent in the preceding month.