The rate at which prices of goods and services rise in Nigeria sustained its upward trajectory for the sixth consecutive month, at the Consumer Price Index (CPI) which measures inflation rose to 12.2 percent in February from 12.13 percent in January.

This is 0.07 percent points higher than the rate recorded in January 2020 and is the fastest pace of consumer price growth witnessed since April 2018. According to February inflation data released by the National Bureau of Statistics (NBS) yesterday, increases were recorded in all COICOP divisions that yielded the headline index with a month-on-month headline index increasing by 0.79 percent in February 2020, a 0.08 percent rate lower than 0.87 percent recorded in January 2020.

The percentage change in the average composite CPI for the 12 months period ending February 2020 over the average of the CPI for the previous twelve months period was 11.54 percent, showing an increase of 0.08 percent point from 11.46 percent recorded in January 2020.

Food inflation notched higher to 14.9 per cent in the review period, owing to an unfavourable base from the prior year. The NBS noted that the highest increases were recorded in the prices of Bread and Cereals, Fish, Meat, Vegetables, and Oils and fats.

On month-on-month basis, the food sub-index increased by 0.87 percent in February 2020, down by 0.12 percent points from 0.99 percent recorded in January 2020.

The average annual rate of change of the Food sub-index for the twelve-month period ending February 2020 over the previous 12-month average was 13.98 percent, 0.12 percent points from the average annual rate of change recorded in January 2020.

Core inflation, which excludes the prices of volatile agricultural produce stood at 9.43 percent in February 2020, up by 0.08 percent when compared with 9.35 percent recorded in January 2020.

The highest increases were recorded in prices of Pharmaceutical products, Non-durable household goods, Catering services, Passenger transport by air, Repair of furniture, Maintenance and repair of personal transport equipment, Water supply, carpet and other floor coverings, Major household appliances, Dental services, Hospital services and Vehicle spare parts.

Commenting on the February inflation figures, analysts at Afrinvest West Africa in an emailed note said “we suspect that the M-o-M moderation in consumer prices in February reflects the thinning-out effect of festive season purchases and land border closure.

“However, we believe this would be short-lived once consumer prices fully reflect the recent VAT increase. In addition, as a fallout from the effects of the COVID-19 pandemic, we expect exchange rate pressures and supply chain disruptions with trade partners to impact domestic consumer prices in the coming months,” Afrinvest analysts said.