Inflation rate rises by 0.16% to 11.44 in December-NBS

The Consumer Price Index (CPI), otherwise known as inflation rate for goods and services, rose to the highest level since May, at 11.44 per cent (year-on-year) in December 2018, a 0.16 per increase from the 11.28 per cent recorded in November, the National Bureau of Statistic (NBS) has revealed. The CPI measures the average change in prices of goods and services consumed by people for day-to-day living over time The statistics agency, in its latest CPI report published on Wednesday, said all the divisions that contribute to the headline index increased. According to the report, this is the first time in seven months that inflation would reach such levels. The last time the index was this high was in May 2018 when it was 11.66 per cent. “The urban inflation rate increased by 11.73 per cent (year-on-year) in December 2018 from 11.61 per cent recorded in November 2018, while the rural inflation rate increased by 11.18 per cent in December 2018 from 10.99 per cent in November 2018,” the report read. “On a month-on-month basis, the urban index rose by 0.76 percent in December 2018, down by 0.07 from 0.83 percent recorded in November 2018, while the rural index also rose by 0.72 percent in December 2018, down by 0.06 per cent from the rate recorded in November 2018 (0.78) percent.” For the states, Bayelsa, Zamfara, and Ekiti recorded the highest inflation rate while Cross River, Ogun and Kwara recorded the lowest increase in prices. Food inflation was also highest in Abuja, Bayelsa, and Nasarawa while Ogun, Cross River, and Oyo. Earlier in the week, analysts at FSDH Research had projected inflation rate of 11.69 per cent for December, against 11.448per cent eventually came yesterday for December 2018. The analysts, in their report, explained that the expected increase in the inflation rate will reflect higher price increases within the Food and Non-Alcoholic Beverages division and other non-food items due to end-of-year and festivity purchases. Motolani Oseni