The Reasons Inflation Rose in Nigeria to 18.72% in January 2017

Data released by the National Bureau of Statistics has shown that the inflation rate in January 2017 was 18.72%. This represents an increase of 0.17% over the December 2016 inflation rate of 18.55%. This increase is more than the 0.07% increase recorded between November 2016 and December 2016 but is far lower than the sharp increases recorded month-on-month during the first three-quarters of 2016. The highest increase recorded in 2016 was a 1.9% increase from 13.7% in April 2016 to 15.6% in May 2016. Additionally, a separate food index showed inflation at 17.82 percent from 17.39 percent in December 2016.

Reasons for the increase;

According to the Bureau, the faster pace of growth in headline inflation, year on year, were recorded in the following products; bread and cereals, meat, fish, oils and fats, potatoes, yams and other tubers, wine and spirits, clothing materials and accessories, electricity, cooking gas, liquid and solid fuels, motor cars and maintenance, vehicle spare parts and fuels and lubricants, for personal transport equipment, passenger transport by road.

Looking at inflation numbers on a month on month basis, also shows headline inflation was driven by passenger transport by air, fuels and lubricants for personal transport equipment, liquid fuels, cooking gas, oils and fats, fruits, Miké cheese and eggs, fish, meat and bread and cereals