.Uwaleke tasks CBN on agric interventions
The National Bureau of Statistics (NBS), said inflation rose to 16.47 per cent (year-on-year) in January, and that the increase was 0.71 per cent higher than 15.75 per cent recorded in December 2020.
It said this in the “Consumer Price Index (CPI), January 2021” report released on Tuesday in Abuja.
The NBS said increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the Headline index.
According to the report, on month-on-month basis, the headline index increased by 1.49 per cent in January, which was 0.12 per cent lower than the 1.61 per cent recorded in December 2020.
“The percentage change in the average composite CPI for the 12 months period ending January over the average of the CPI for the previous 12 months period was 13.62 per cent. This represents a 0.37 per cent increase over 13.25 per cent recorded in December 2020.
“The urban inflation rate increased by 17.03 per cent (year-on-year) in January from 16.33 per cent recorded in December 2020, while the rural inflation rate increased by 15.92 per cent in January from 15.20 per cent in December,” the report noted.
The NBS said on a month-on-month basis, the urban index rose by 1.52 per cent in January, down by 0.13 per cent when compared to the rate recorded in December.
It added that the rural index also rose by 1.46 per cent in January, down by 0.12 per cent compared to the rate that was recorded in December (1.58 per cent).
According to NBS, the corresponding 12 month year-on-year average percentage change for the urban index is 4.23 per cent in January.
This, it said was higher than the 13.86 per cent reported in December, while the corresponding rural inflation rate in January was 13.04 per cent compared to 12.67 per cent recorded in December.
The report said the composite food index rose by 20.57 per cent in January compared to 19.56 per cent in December.
This rise was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, meat, fruits, vegetable, fish and oils and fats.
On month-on-month basis, the food sub-index increased by 1.83 per cent in January, down by 0.22 per cent from 2.05 per cent recorded in December.
“The ‘All items less farm produce’ or core inflation, which excludes the prices of volatile agricultural produce stood at 11.85 per cent in January, up by 0.48 per cent when compared with 11.37 per cent recorded in December.
“On month-on-month basis, the core sub-index increased by 1.26 per cent in January. This was up by 0.16 per cent when compared with 1.10 per cent recorded in December,” said the report.
The NBS said the highest increases were recorded in prices of passenger transport by air, medical services, hospital services, passenger transport by road, pharmaceutical products and paramedical services.
Others are: repair of furniture, vehicle spare parts, motor cars, miscellaneous services relating to the dwelling, maintenance and repair of personal transport equipment.
For state profiles, the report said for the month under review, all items inflation on year-on-year basis was highest in Kogi at 21.38 per cent, Oyo 20.17 per cent and Bauchi 19.52 per cent.
Meanwhile Kwara at 13.96 per cent, Abuja 12.96 per cent and Cross River at 12.22 recorded the slowest rise in headline Year-on-Year inflation.
On month-on-month basis, however, January’s all items inflation was highest in Oyo at 4.28 per cent, Ebonyi 3.95 per cent and Lagos 3.33 per cent.
However, Abuja, Edo and Cross River recorded price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).
The report said food inflation on a year-on-year basis was highest in Kogi at 26.64 per cent, Oyo 23.69 per cent and Rivers 23.49 per cent, while Ondo at 17.2 per cent, Abuja 16.73 per cent and Bauchi 16.37 per cent recorded the slowest rise.
On month-on-month basis, however, January food inflation was highest in Oyo at 4.47 per cent, Lagos 3.86 per cent and Rivers 3.11 per cent.
Meanwhile Akwa Ibom, which stood at 0.25 per cent and Bayelsa at 0.13 per cent, recorded the slowest rise with Edo recording price deflation or negative inflation.
The News Agency of Nigeria (NAN), reports that CPI measures the average change over time in prices of goods and services consumed by people for day-to-day living.
Meanwhile, the Association of Capital Market Academics of Nigeria (ACMAN) has urged the Central Bank of Nigeria (CBN) to scale up interventions in agricilture sector to stem the rising inflation figure.
ACMAN President, Prof. Uche Uwaleke, said this in an interview with the News Agency of Nigeria (NAN) on Tuesday, while reacting to the January inflation figure released by the National Bureau of Statistics (NBS).
The Consumer Price Index report released by the NBS said the nation’s headline inflation rose by 0.71 basis points in January to 16.47 per cent from 15.75 per cent recorded in December.
According to the report, Nigeria’s headline inflation has risen to its highest in over three years, while food inflation rose to its highest since July 2008, when it stood at 20.9 per cent.
On a month-on-month basis, the headline index increased by 1.49 per cent in January 2021. This is 0.12 per cent points lower than the rate recorded in December 2020 (1.61 per cent).
Uwaleke said the Federal government and the CBN should scale up interventions in agriculture.
He observed that the inflationary pressure had refused to abate in spite of the reopening of the border and reduction in levy on imported cars.
“Inflationary pressure is coming more from the food component which has now exceeded 20 per cent.
“This reflects the lingering effects of increases in Value Added Tax, pump price of fuel and electricity tariffs as well as insecurity and transport bottlenecks,” Uwaleke said.
He added that the CBN should equally consider increasing foreign exchange supply to bring down exchange rate, especially now that crude oil prices are relatively high.
According to him, the new Service Chiefs should roll up their sleeves and confront the seemingly intractable insecurity challenge in the country.
