UPDATE: Costs of rice, garri others soar as inflation rate drops for the first time in 15 months

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Posted on March 16, 2017

Nigeria inflation rate finally fell for the first time since 2015 as consumer price index (CPI), which measures inflation in the economy went down in what signals as a recovery in the Nigerian economy even as price of food commodities continue to rise.

The National Bureau of Statistics (NBS) says the inflation rate dropped from 18.72 percent in January 2017, to 17.78 percent in February 2017.

However, the price of food commoditoes like garo, rice have skyrocketed by over 70 per cent between February 2016 and February 2017.

 The National Bureau of Statistics (NBS) showed that the average prices of beans, beef, tinned milk, frozen chicken, onion, tomato and yam also recorded unprecedented leaps in the last one year.

“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 on Tuesday.

UPDATE: Costs of rice, garri others soar as inflation rate drops for the first time in 15 months

Chart indicating drop in inflation

“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.”

According to NBS, there are recorded price increases in “housing, water, electricity, gas and other fuel, education, food and alcoholic beverages, clothing and frontware and transportation services.”

However, despite the recovery seen in the core inflation rate, it was noted that food prices remain on the rise, with a surge in the food index, from 17.82 percent in January to 18.53 percent (year-on-year) in February.

The increase was driven by “increases in the prices of bread, cereals, meat, fish, potatoes, yams and other tubers and wine, while the slowest increase in food prices year-on-year were recorded by Soft Drinks, Coffee, Tea and Cocoa.”

Meanwhile, in the video below, Naij.com visited markets recently to discover that despite President Buhari’s return, prices of goods are still on the high side.

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