Posted By: TOLA AKINMUTIMI
The nation’s Composite Price Index, CPI, which measures inflation, rose by 9.2 per cent (year-on-year) in June, representing 0.2 percentage points from the 9.0 per cent rate recorded in the preceding month.
National Bureau of Statistics, NBS, which released the CPI rate, representing the highest recorded since December last year, attributed the faster pace of the Headline index to bottlenecks observed during the period, resulting in major most Classification of Individual Consumption by Purpose (COICOP) divisions.
The Bureau noted that through the first six months of the year, the Headline index increased by 8.6 per cent, 0.7 percentage points higher from rates recorded during the corresponding period in 2014.
The Headline Index is made up of the Core Index and Farm Produce items.
According to NBS, the faster pace of increases in the COICOP divisions were also observed in the Food and Core sub-indices as food prices edged higher in the month under review.
This is due to irregularity of the supply of petrol, thus causing the Food Subindex to rise by 10.0 per cent (year-on-year) in June up from the 9.8 per cent recorded in May.
It stated further that on a year-on-year basis, all groups, which contribute to the food sub-index increased at a faster pace during the period with the exception being oils and fats; potatoes, yams and tuber groups, which increased at a slower pace in the month under review.
Expatiating on the Food Sub-Index trend, the agency reported that on a month-on-month basis, the food sub-index increased by 1.1 per cent, maintaining the high pace of increase recorded in the preceding month, adding that the highest price increases were recorded in the vegetables, fish, bread and cereals; and potatoes, yam and other tubers, groups.
On advances recorded by the “All Items less Farm Produce” or core sub-index, the Bureau reported that this increased marginally by 8.4 per cent (year-on-year), with the highest pressures observed in the transportation, Education and miscellaneous good and services.
The pace of increases, however, slowed in multiple divisions as well, such as clothing and footwear, housing water, electricity, gas and other fuels, as well as other divisions.
NBS stated that in June, both the urban and rural price indices increased at a faster pace relative to May, as urban index increased by 9.2 per cent, up slightly from 9.1 per cent in the preceding month, while the rural index increased by 9.1 per cent, 0.2 percentage points higher than 8.9 per cent in May.
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