The inflation rate has risen to 9.6% according to the latest Consumer Price Index report from the National Bureau of Statistics. It’s the highest since December 2012.
The rate increased from 9.4% in November and the NBS said this happened largely because food prices went up in the month.
It said, “In December, the pace of increases recorded by Consumer Price Index which measures inflation increased for the second consecutive month. The headline index increased by 9.6 per cent (year-on-year), 0.2 per cent points higher from rates recorded in November.”
Food prices increased by 10.6% last month according to the NBS report.
The bureau said, “All major food groups, which contribute to the food sub-index, increased at a faster pace during the month with the exception of the milk, cheese and eggs group.”
A hike in bus fares also pushed the CPI up, resulting from the petrol scarcity.
The NBS said the average pump price of petrol last month was about N120 on average. For instance, in Yobe State it cost N123.73 per litre. In Taraba it cost N153.33. In Imo it cost N136.36 and N89.80 a litre in Lagos.
The NBS report is based on the actual amount households nationwide spent buying petrol in December.
The CPI measures changes in the prices of goods and services, and it’s used to determine the extent of inflation in a period. An inflation rate close to double digits is generally considered high, and usually governments take action when this happens to reverse the trend.
The economy has been struggling severely since the oil price collapsed to $30 a barrel last year.
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