Nigeria inflation decreases despite election spending

The National Bureau of Statistics (NBS) has released Nigeria’s inflation rate for the month of February 2019. According to the data released, inflation slumped 0.06 percent to 11.31 percent in February from 11.37 percent in January 2019. This is the lowest figure recorded in 14 months.  


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Food inflation, which is derived from the Food composite index, increased to 13.47 percent from 13.51 percent recorded in January 2019. The rise in the index was caused by increases in prices of Fish, Bread and cereals, Potatoes, yam and other tubers, Meat, Vegetables, Oils and fats and Fruits.


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The Core inflation or  ”all items less farm produce” which excludes the prices of volatile agricultural produce stood at 9.8 percent in February 2019 down by 0.1 percent when compared with 9.9 percent recorded in January 2019. According to the report, the highest increases were recorded in the prices of Tobacco, repair and hire of footwear, Major household appliances, Domestic services and household services, Dental services, Medical and hospital services, Cleaning, repair and hire of clothing.


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How states fared

At the state level, the highest inflation rates were recorded Kebbi (13.78 percent),Taraba (13.57 percent) and Kaduna (13.54 percent), while Cross River (9.81 percent) Delta (9.60 percent) and Kwara (9.36 percent) recorded the slowest rise in headline Year on Year inflation.


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On a month on month basis, the highest inflation rate recorded were in  Taraba (1.87 percent), Ogun (1.83 percent), and Imo (1.62 percent), while Jigawa recorded the slowest rise (0.13 percent), with Delta and Kogi recording negative inflation or price deflation in February 2019.


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During the same period, food inflation on a year on year basis was highest in Nasarawa (16.78 percent), Taraba (16.76 percent) and Abuja (16.29 percent), while Kogi (11.68 percent), Delta (11.51 percent) and Abia (10.81 percent) recorded the slowest rise.

It would be recalled that the Central Bank of Nigeria (CBN) and some experts had expected that the inflation for the month of February 2019 was going to increase due to high election spending but surprisingly this didn’t happen.