Cost of living soars as inflation spikes up to 18.3%

The National Bureau of Statistics (NBS) has just released the latest inflation rate, indicating another spike in inflation rate to 18.33 per cent, 0.48 percentage points above the previous rate. The reality check for Nigerians is that they may have to live with rising cost of living in the nearest future.

In the report, the NBS indicated that Consumer Price Index (CPI),which measures inflation, increased to 18.33 per cent in October 2016 as against 17.85 per cent recorded in September 2016.

The report showed that increases were recorded across almost all major divisions which contribute to the headline index. Communication and restaurants and hotels however recorded the slowest pace of growth in October, growing at 5.7 per cent and 9.4 per cent respectively.

The report showed that the food index rose by 17.1 per cent year-on-year in October, up by 0.47 per cent points from 16.6 per cent recorded in September. During the month, all major food groups which contribute to the food sub-index increased with fruits recording the slowest pace of increase at 11.5 per cent.

Price movements recorded by the All Items less farm produce or Core sub-index rose by 18.1 per cent in October, up by 0.4 per cent points from rates 17.7 per cent recorded in September. During the month, the highest increases were seen in housing, water, electricity, gas and other fuels as well as, fuels and lubricants for personal transport equipment and education.

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Significant price movement under the Core Sub-index was also recorded for clothing and footwear, which recorded as increase of 17.8 percent year on year. The groups with least growth pace recorded in October were Communication (5.7 percent), Restaurants and Hotels (9.4 percent) and Recreation and Culture (10.3 percent).

On a month-on-month basis, the Headline index rose by 0.83 percent in October, higher from the rate recorded in September (0.81 percent).

The Urban index rose by 19.9 percent (year-on-year) in October from 19.5 percent recorded in September, and the Rural index increased by 16.95 percent in October from 16.4 percent in September.

On month-on-month basis, the Urban index rose by 0.81 percent in October from 0.79 percent recorded in September, while the Rural index rose by 0.84 percent in October from 0.83 percent in September.

The percentage change in the average composite CPI for the twelve-month period ending in October 2016 over the average of the CPI for the previous twelve-month period was 14.2 percent, higher from 13.5 percent recorded in September.

The corresponding twelve-month year-on-year average percentage change for the urban index increased from 14.4 percent in September to 15.3 percent in October, while the corresponding rural index also increased from 12.6 percent in September to 13.3 percent in October.

The Buhari-led All Progressives Congress (APC) government has seen all its efforts at reviving the economy go up in smoke as oil prices continue to hit rough patches and the country’s currency, the Naira, takes a beaten at the open market. Also, sharp disagreements within the executive arm of government on how best to tackle the economy has led to poor policy formulation, leaving the larger populace reeling in abject poverty.

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