Inflation rate rose to 13.7% in April, says NBS

From the National Bureau of Statistics (NBS) came yesterday a revelation that the rate of inflation in April has risen to 13.7%. It rose higher than the March inflation figure of 12.8% by roughly 0.9%.

According to the Consumer Price Index (CPI) report made available to journalists in Abuja yesterday, the April inflationary trend represents the third relatively strong increase of double digits since the year began.

“The headline index increased by 13.7% (year-on-year), roughly 0.9% points higher from rates recorded in March (12.8%). The higher rate of increase relative to March, was reflected in faster increases across all divisions which contribute to the index with the exception of the restaurants and hotels division which increased, albeit at a slower pace for the third consecutive month.
Lingering structural constraints continue to manifest spillovers in April as electricity rates, kerosene prices, the impact of higher PMS prices and vehicle spare parts were the largest contributors to the core sub index during the month. These items, as well as other imported items, continued to have ripple effects across many divisions that contribute to the Core. The index increased by 13.4% in March, roughly 1.2% points from rates recorded in March,” the report said.

According to the CPI, the Food index reflected tighter supplies across most groups that contribute to the sub index. The sub index increased by 13.2% in April, up by 0.4% points from rates recorded in March as all major food groups which contribute to the Food sub- index increased at a faster pace driven by higher food prices in Fish, Bread and Cereals, and Vegetables groups.

It was learnt that month-on-month, while the Headline Index increased in April, the index slowed for the second consecutive month.

The index increased by 1.6% in April, 0.6% points from rates recorded in March with the exception of the Housing, Water, Electricity, Gas and Other Fuel division. Both the Urban and Rural indices recorded marked increases for the third consecutive month in March. The Urban index rose by 15.1%, 1.6% points from 13.5% in March. While the Rural Index increased, upward pressure on prices were relatively less severe in the rural areas as the index increased 12.8% year-on-year, 0.7% points from 12.0% in March. On a month-on-month basis, while the Urban index increased at a faster pace, from 2.0% in March to 2.2% in April, the Rural index increased at a slower pace, from 2.1% in March to 1.4% in April.

The report revealed that percentage change in the average composite CPI for the twelve- month period ending in April 2016 over the average of the CPI for the previous twelve-month period was 10.2%, higher from 9.8% recorded in February. The corresponding twelve- month year-on-year average percentage change for the Urban index increased from 9.9% in March to 10.5%, while the corresponding Rural index also increased from 9.6% in March to 9.9% in April.