Nigeria records highest inflation rate in 2014, says survey

FOR 10 consecutive months in 2014, rate of inflation in the country monitored showed that prices of goods and services remained high from 7.7% which was the lowest, to an all time high of 8.5% just before year end. However,all the highs were on single digit. 

Analysis of figures released by the National Bureau of Statistics (NBS) all through 2014, indicated that in February, the rate of inflation stood at 7.7%, down from 8.0% in January,whereas in March, it jumped slightly higher to 7.8%.

In April however, the rate of inflation in the country inched higher to 7.9%,and in the following month(May),it clocked 8%. The rise continued in June when the Consumer Price Index(CPI) released by the bureau showed that inflation had hit 8.2%.In the following month(July), the free hike continued to 8.3%,leaving consumers at the mercy of market forces.

Then came the month of July which posted the highest ever inflation numbers of 8.5% in 2014.But in the month of September, prices of goods and services tracked showed a marginal reduction of the inflation rate to 8.3%.In the month of October, the inflation figure crashed momentarily to 7.8%,before heading up again to 7.9% in November.In a rather predictable manner, the figures again moved to 8.0% in December of last year,confirming analysis that the inflation rate in the country were consistently high for  straight ten months.

Meanwhile, the NBS has also disclosed that throughout last year,the inflationary trend in the country stood at single digits,even as it confirms the policy decision of the Central Bank of Nigeria(CBN),to retain  inflation rate at between 6 and 9% in 2014.

In 2012, the rate of inflation in the country clocked two digits of 12.0%, however, this was not the first time that inflationary trend clocked two digits. Between 2006 to 2013, inflation rate averaged 10.59 per cent, reaching an all time high of 15.60 per cent in February 2010 and a record low of three per cent in July 2006.

According to the NBS,in December, the Consumer Price Index (CPI) which measures inflation rose by 8.0 percent (year-on-year), 0.1 percentage points from 7.9 percent recorded in November. This implies that inflation has held in the single digit range for twenty four consecutive months. Specifically in December, the faster pace of price increases recorded by the Headline index was as a result of advances in a broad array of divisions that yield the Headline index.

Food prices edged slightly higher in December as a result of the Christmas and the new year celebrations. Within that period, the Food sub- index rose by 9.2 percent (year-on- year) up from 9.1 percent recorded in November. This was the first uptick in rates of food prices observed in four months. While higher increases were recorded in the Meat, Fish, and Dairy groups, the Food sub-index was weighed upon by slower rises in the Bread and Cereals, Oil and Fats, and Fruits groups.

The pace of advances recorded by the “All Items less Farm Produce” or Core sub-index slowed for the first time since August 2014. The Core sub-index eased in December, increasing by 6.2 percent, after increasing by 6.3 percent in the previous four months. While prices increased in most divisions that contributed to the Core sub-index, slower increases were recorded in the Communication and, Recreation and Culture groups.