Nigeria Inflation Rate Down to 9% in January

In Nigeria, the inflation rate decreased to 9.0 percent in January of 2013, as the effect of a year-earlier reduction in fuel subsidies dropped out of the calculation and food prices decreased.
Nigeria National Bureau of Statistics | Joana Taborda | 2/18/2013 11:37:05 AM

On the year-on-year basis, the inflation rate decreased to 9.0 percent in January of 2013 from 12.0 percent in December of 2012. The relative moderation in the headline index during the month of January of 2013 results from base effects. The reduction of the Premium Motor Spirit (Petrol) subsidy in January of 2012 led to increases in transportation costs as well as secondary effects, as the transportation costs affected both food and non- food prices. Shocks to prices last year imply that the year-on-year changes exhibited this year will be muted.

Food Prices were slightly lower from levels exhibited in December of 2012, as the index declined to 10.1 percent in January of 2013 from the 10.2 percent exhibited in December. The marginal decline in food prices is a result of the floods which occurred from July to Mid-October, as well as other demand and supply conditions.

On the month-on-month basis, the composite CPI increased by 0.62 percent in January of 2013. The Food index augmented by 0.8 percent from December 2012 to January 2013. The dry season led to a rise in the prices of bread, cereals, imported food, vegetables, potatoes, yams and fish.

The Core index rose by 1.4 percent from levels recorded in December of 2012. It results from increases in the Housing, Electricity, Gas and other Fuels, in particular liquid fuels (kerosene), actual rental and imputed rent prices, garment prices, and non-durable housing goods.

Nigeria Inflation Rate Down to 9% in January