Nigeria On Recovery Path As Inflation Falls To 15-Month Low

The data released by the statistics office on Tuesday showed that the Consumer Price Index (CPI) which measures inflation fell to 17.78 percent (year-on-year), 0.94 percent points lower from the rate recorded in January (18.72) percent.

“On a Headline basis, the Consumer Price Index (CPI) which measures inflation increased by 17.78 percent (year-on-year) albeit at a slower pace in February 2017, 0.94 percent points lower from the rate recorded in January (18.72) percent,” NBS said.

“This represents the first time in 15 months that the headline CPI has declined on year on year basis representing the effects of slower rises in already high food and non-food prices and favourable base effects over 2016 prices.”

Despite the positive signs, food inflation rose to 18.53% year on year in Feb 2017 from 17.82% in January 2017 and by 1.99% month on month in Feb 2017 from 1.29% in January.

The highest increase was recorded in bread, cereals, fish, meat, tubers, wine, with the slowest in coffee, soft drink, tea and cocoa.

Core inflation drops to 16.0% year on year in February 2017 from 17.9% in January 2017 and by 0.68% month on month in February 2017 from 0.62% in January.

Urban inflation drops 18.57% year on year in February 2017 from 20.31% in January 2017 while Rural inflation drops by 16.98% from 17.34% in January.

National average Premium Motor Spirit (PMS) prices rose 0.7% in February 2017 month on month and 50.1% year on year. National average Diesel/ Automotive Gas Oil (AGO) prices rose 3.68% in February 2017 month on month and 68.74% year on year.

At 17.78 percent, inflation rate in the country still remain the highest since 2007.