Increase in food prices pushes inflation to 8.7%

The National Bureau of Statistics on Sunday released the Consumer Price Index report, indicating that the increase in the prices of meat, oils, potatoes, yams and other tuber classes had pushed the inflation rate up by 8.7 per cent.

The report, which was signed by the Statistician-General of the Federation, Dr. Yemi Kale, and sent to our correspondent through the e-mail, said the July figure of 8.7 per cent in the inflation rate was 0.3 percentage points higher than the 8.4 per cent rate recorded in June.

It said, “In July, the Consumer Price Index, which measures inflation, rose by 8.7 per cent (year-on-year). This was 0.3 percentage points higher than the 8.4 per cent rate recorded in June.

“While changes in the headline index have remained in single digits for the seventh consecutive month, prices edged higher as a result of increases in all 12  classifications of individual consumption, according to purpose divisions.

“These increases were also exhibited in increases in both the food and core sub-indices.”

The report stated that  the core sub-index recorded its largest month-on-month change since the 1.4 per cent change recorded in January due to changes across non-food divisions.

It added that food prices, as exhibited by the food sub-index, continued to edge higher in July.

The NBS said while there had been reports of the beginning of harvests of some crops, including yam tubers, the impact on the total supply chains remained relatively negligible to bring substantial relief to consumers due to tight supplies.

“In July, the highest price increases were recorded in the meat, oils and fats, potato, yam and other tuber classes. The average annual rate of rise of the food sub-index for the 12-month period ending in July 2013 was 10.2 per cent when compared with the same period in 2012; 0.2 percentage points lower from the 10.4 per cent recorded for the 12-month average year-on-year change for the period ending in June,” it added.

The  report noted that while market had begun to observe a trickle in newly harvested crops, their quantities had not been substantial enough to impact prices.

On a month-on-month basis, it said both the urban and rural all-item indices increased, but at slightly lower rates compared to the rates recorded in June.


Source: Business News