NIGERIAN INFLATION DOWN IN FUEL SCARCITY DECEMBER, SAYS NBS

In spite of the chronic fuel scarcity in the country for the better part of December 2017 which led to skyrocketing transport fares and other related cost heads, the National Bureau of Statistics NBS, in its consumer price index report released today, January 16, says Nigeria's inflation rate dropped further to 15.37%, year on year 

This was 0.53% points lower than the growth rate in the composite index year on year by November 2017. And thus marked the eleventh month inflation will consistently eased down as the nation stretches limps humbled by 2016 depression.

The composite index was driven more by top price increases in bread and cereals; potatoes and other tubers; cocoa and tea; milk, cheese and eggs and oils and fats, says the NBS.

Transport fares by air or by road did not make top price shoot up list. It did feature though amongst the drivers of core index minus food.

However, the housing, gas and fuel index did show some remarkable year on year increases but about the same way in November 2017 when no scarcity reared its head and there were no additional demand pressure from end of year festive season purchases.

In December 2016 this index was 185.9 and by last December it had risen to 267.4; that is up by 43.8% year on year. Earlier in November 2017 year on year growth of the same index was 43.9% from November 2016's 185 to 266.2 by November 2016.

So perhaps the fuel scarcity induced price jumps were urban phenomenon? Again, the NBS figures do not so indicate.

By December 2017, the composite urban index was 249.3, up 15.8% on December 2016's 215.3. In November the year on year increase in this index was 16.2% thus implying 0.1% point easing.

The CPI report did indicate that all things being equal, the three states with top composite price index in December 2017 were Kwara (313.4) meaning average price there was above three times November 2009 benchmark levels; Ogun with 266.1 and Bauchi (263.4).

Of the three, Bauchi recorded the highest growth year on year of 21.96 compared to 16.1% for Ogun and 13.5% for Kwara.

The three states were food prices were relatively highest were Oyo with food index of 268.7; Lagos (264.1) and Abia (263.4).

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