Nigeria’s Inflation Rate Rises to Double Digits in February 2016

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All Items Index
In February, the Consumer Price Index(CPI) which measures inflation recorded a significant uptick. The headline index
increased by 11.4% (year-on-year) in February, roughly 1.76% points higher from rates recorded in January (9.6%).

The faster pace of increases which led to the overall increase in the headline index were recorded across almost all major divisions which contribute to the Headline index with the exception of
the Restaurants and Hotels division which increased, albeit at a slower pace.

After increasing at the same pace for two months, the pace of increases of food prices as recorded by the Food sub-index increased at faster pace in
February. The Food index increased by 11.3%, up by 0.71% points from rates recorded in January.

During the month, all major food
groups which contribute to the Food sub-index increased at a faster pace during the month with the exception of the Potatoes, Yams and Other Tubers;
and Sugar, jam, honey, chocolate and confectionery groups.

The “All Items less Farm Produce” or Core sub-index, increased at a faster pace in February as imported items as well as other domestic shocks resulted
in ripple effects across many divisions that contribute to the Core. The index increased by 11.0% in February, roughly 2.2% points from rates recorded in January.

On a month-on-month basis, the
Headline Index increased at a faster pace in February relative to January. The index increased by 2.3%, in February, roughly 1.4% points from rates recorded in January, as all
divisions that contribute to the index increased with the exception of the Restaurants and Hotels division increasing at a slower pace.

In January, both the Urban and Rural indices recorded marked increases. The Urban index rose by 12.3% (year-on-year) from 9.7% recorded the month earlier, and the Rural index increased by 10.7% in February from 9.5% in
January. On a month-on-month basis, both the Urban and Rural indices increased at a faster pace, as the Urban index increased by 3.0% in February from 0.9% in January, while the Rural index
increased by 1.8% from 0.9% in
January.

The percentage change in the average composite CPI for the twelvemonth period ending in February 2016 over the average of the CPI for the previous twelve-month period was 9.4%, higher
from 9.1% recorded in January.
The corresponding twelve month year-on-year average percentage change for the Urban index increased from 9.2% in January to 9.5% in February, while the
corresponding Rural index also
increased from 9.0% in January to 9.2%in February.

Food Index
Imported food items as well as other necessary inputs to producing key local stapels such as bread continue to drive
the food index higher. The Food index increased by 11.3% (Year-on-year) 0.7% points higher from rates recorded in January. The highest price increases
were recorded in the Fish, Vegetables
and Bread and All Items Index
In February, the Consumer Price Index
(CPI) which measures inflation recorded
a significant uptick. The headline index
increased by 11.4% (year-on-year) in
February, roughly 1.76% points higher
from rates recorded in January (9.6%).
The faster pace of increases which led
to the overall increase in the headline
index were recorded across almost all
major divisions which contribute to the
Headline index with the exception of
the Restaurants and Hotels division
which increased, albeit at a slower
pace.
After increasing at the same pace for
two months, the pace of increases of
food prices as recorded by the Food
sub-index increased at faster pace in
February. The Food index increased by
11.3%, up by 0.71% points from rates
recorded in January.
During the month, all major food
groups which contribute to the Food
sub-index increased at a faster pace
during the month with the exception of
the Potatoes, Yams and Other Tubers;
and Sugar, jam, honey, chocolate and
confectionery groups.
The “All Items less Farm Produce” or
Core sub-index, increased at a faster
pace in February as imported items as
well as other domestic shocks resulted
in ripple effects across many divisions
that contribute to the Core. The index
increased by 11.0% in February,
roughly 2.2% points from rates
recorded in January.
On a month-on-month basis, the
Headline Index increased at a faster
pace in February relative to January.
The index increased by 2.3%, in
February, roughly 1.4% points from
rates recorded in January, as all
divisions that contribute to the index
increased with the exception of the
Restaurants and Hotels division
increasing at a slower pace.
In January, both the Urban and Rural
indices recorded marked increases. The
Urban index rose by 12.3% (year-on-
year) from 9.7% recorded the month
earlier, and the Rural index increased
by 10.7% in February from 9.5% in
January.
On a month-on-month basis, both the
Urban and Rural indices increased at a
faster pace, as the Urban index
increased by 3.0% in February from
0.9% in January, while the Rural index
increased by 1.8% from 0.9% in
January.
The percentage change in the average
composite CPI for the twelvemonth
period ending in February 2016 over
the average of the CPI for the previous
twelve-month period was 9.4%, higher
from 9.1% recorded in January.
The corresponding twelve month year-
on-year average percentage change for
the Urban index increased from 9.2% in
January to 9.5% in February, while the
corresponding Rural index also
increased from 9.0% in January to 9.2%
in Febuary.
Food Index
Imported food items as well as other
necessary inputs to producing key local
stapels such as bread continue to drive
the food index higher. The Food index
increased by 11.3% (Year-on-year) 0.7%
points higher from rates recorded in
January. The highest price increases
were recorded in the Fish, Vegetables
and Bread and Cereals groups for the
second consecutive month.
On a month-on-month basis, the Food
sub-index increased by 1.4% in
February, 0.45% points higher from
rates recorded in January. All groups
which contribute to the Food Sub-index
increased at a faster pace, with the
exceptions of the Potatoes, Yams and
Other Tubers; Sugar, jam, honey,
chocolate and confectionery; and Milk,
Eggs and Cheese groups.
The average annual rate of change of
the Food sub-index for the twelve-
month period ending in February 2016
over the previous twelve month
average was 10.2%, 0.2%points from
the average annual rate of change
recorded in January (10.0%).
All Items less Farm Produce
The “All items less Farm Produce” or
Core sub-index, which excludes the
prices of volatile agricultural produce
increased at a faster pace in February.
The index increased by 11.0% during
the month, 2.2% points from 8.8% in
January as all key divisions which
contribute to the index increased at a
faster pace with the exception of the
Restaurants and Hotels division.
On a month-on-month basis, the Core
Sub-index increased at a faster pace in
February, increasing by 2.7% from 0.8%
in January. In February, the highest
price increases were recorded in the
Electricity, Books and Stationery groups,
and Liquid Fuels groups.
The average twelve month annual rate
of rise of the index was recorded at
8.7% for the twelvemonth period
ending in February 2016, 0.3% points higher from the twelve month rate of change recorded in January.
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