NIGERIAN INFLATION AT 18.33%, GALLOPING AGAIN?

Inflation rate in Nigeria at 18.3% year on year by October seems to be galloping once again after a mild growth to 17.9% in September.

According to latest consumer price index (CPI) by the National Bureau of Statistics (NBS), month on month the increase was 0.83%, also ahead of September's 0.81%.

The pressure came more from urban price growth which by October recorded 19.9% year on year compared to 19.5% in September.

This contrasts with rural rate of 16.9% as against 16.4% year on year by September.

From the latest figures, virtually all necessities now post prices above twice the base figures recorded in November 2009.

The highest by October was housing, water and electricity index which was 232.3 compared to 100 for base November 2009.

It was followed by Food index with 213.9; food and nonalcoholics 212.9; imported food 210.5 thus being the only ones above the all items index for October 209.7.

However, also twice November 2009 level were all items less farm produce 205.9; clothing and footwear 204.4 and transportation 203.4.

The least pressures on the average consumers pocket came from communication with 135.7 index by October, followed by recreation 162.6; alcohol and tobacco 178.9; and health 182.5.

Also yet to clock double average price in November 2009 were education with 191.3 index and all except farm produce and energy 196.6.

Naturally, the one felt immediately by all consumers are price changes in food items.  Year on year, by October the food index was up 17.1% with, says NBS, contributions from most items in the valuation basket notably bread, fish and meat prices rising the most.

From the 12 month moving average, it was easy to see that inflation hard resumed galloping again.

After double digit average growth from 2012 to 2014 early half, throughout 2015 it was single digit between 8 and 9 per cent.

In January it hit 9.13 and took three months to land 10.18 by April. Two months later it was 11.37 and only a .month after it came to 12.04% by July.

In August, it was still 12.74% then rose slightly to 13.5% by September. However, by October the moving average was 14.2% a figure which is higher than the moving average recorded in giddy months between 2012 and 2013,

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