SWITZERLAND, JANUARY 17 – The consumer price index, which measures inflation, stood at 11.98 percent in December 2019. This is indicated in the December 2019 CPI report released on Friday by the National Bureau of Statistics(NBS).
The current rate is 0.13 percentage points higher than the 11.85 percent recorded in November.
This is the highest point the index has reached in 19 months.
“On month-on-month basis, the headline index increased by 0.85 percent in December 2019, this is 0.17
percentage points lower than the rate recorded in November 2019 (1.02%),” the report reads.
“The urban inflation rate increased by 12.62 percent (year-on-year) in December 2019 from 12.47 percent
recorded in November 2019.
“The rural inflation rate increased by 11.41 percent in December 2019
from 11.30 percent in November 2019.
“The composite food index rose by 14.67% in December 2019 compared to 14.48% in November 2019.
“Core inflation, which excludes the prices of volatile agricultural
produce stood at 9.33% in December 2019, up by 0.34% when compared with 8.99%
recorded in November 2019.”
According to the report, the rise in the food index was caused by increases in prices of bread, cereals, meat, fish, O
Oils and fats, potatoes, yam and other tubers.
On a year-on-year basis, food inflation was highest in Sokoto (17.75%), Ogun (17.37%) and Plateau (16.75%), while Bayelsa (13.26%), Delta(12.72%) and Bauchi (12.19%) recorded the slowest rise.
The CPI measures the average change over time in prices of goods and services consumed by people for day-to-day living. The construction of the CPI combines economic theory, sampling and other statistical techniques using data from other surveys to produce a weighted measure of average price changes in the Nigerian economy. The weighting occurs to capture the importance of the selected commodities in the entire index.
The production of the CPI requires skills of economists, statisticians, computer scientists, data collectors and others.
Key in the construction of the price index is the selection of the market basket of goods and services.
Every month, 10,534 informants spread across the country provide price data for the computation of the
CPI.The market items currently comprise of 740 goods and services regularly priced.