- Inflation Rises Moderately in January, Up 18.7%
The cost of living in Nigeria rose moderately in January, following low growth recorded in Communication sector and Restaurants and Hotels.
The Consumer Price Index, which measures inflation rate increased by 18.72 percent (year-on-year) in January, up 0.17 percent points from 18.55 percent recorded in December 2016, the National Bureau of Statistic reported on Thursday.
However, on a monthly basis, headline inflation rose less than projected in January, surging just 1.01 percent from 1.06 percent recorded in December. This represents a 0.05 percent points lower than preceding month.
On a yearly basis, the faster pace of growth in headline inflation were 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.
The report showed the moderate increase recorded in the month was as a result of low growth recorded in Communication and Restaurants and Hotels, both grew at 5.1 percent and 8.4 percent respectively.
In January, costs were mainly driven by air ticket, fuels and lubricants for transport equipment, liquid fuels, cooking gas, oils and fats, fruits, Miké cheese and eggs, fish, meat and bread and cereals.
But, for the past 4 months, the pace of increase has been reducing, indicating consumer prices are beginning to adjust to a series of policy been implemented by the Central Bank of Nigeria and consumer resistance.