National Bureau of Statistics (NBS) yesterday announced a rise in inflation index to 8.4 per cent in February this year (year-on-year) from 8.2 per cent recorded in January.
A major contributor to the index, according to NBS, is food price, especially imported food items.
“All major CIOCOP divisions that contribute to the index increased at a faster pace during the period, the only exception being Recreational and Culture Division, which increased at a slower pace. The faster pace in divisions that yield the Headline Index was also evidenced in both the food and core sub-indices.
Food prices as observed by the Food Sub-index increased at a faster pace in February partly driven by increases in prices of imported food items. The Imported Food sub-index increased by 8.8 per cent (year-on-year), the highest increase recorded since February 2013. The Food sub-index rose by 9.4 per cent (year-on-year), 0.2 percentage points from January. Sectorally, while most groups that contribute to the Food Sub-index increased at a faster pace during the month, the pace of increase in the Food Sub-index was weighed upon by a slower increase in the bread and cereals group,” NBS report said.
Also, it said the pace of advances recorded by the “All Items Less Farm Produce” or core sub-index increased for the second consecutive month in February.
The core sub-index, it noted, increased by 7.0 per cent year-on-year, 0.2 percentage points from 6.8 per cent recorded in January.
“Prices increased at a faster pace in most major non-food divisions except for the Recreational and Culture Division which increased at a slower pace,” it stated.
Recall that the Headline Index is made up of the Core Index and Farm Produce items. As processed foods are included in both the core and food sub-indices, this implies that these sub-indices are not mutually-exclusive.
“After increasing at the same pace on a month-on-month basis for the previous two months; 0.8 per cent, the Headline Index increased at a marginally slower pace in February by 0.7 per cent. The pace of price increases slowed in food and most other non-food divisions with the faster prices observed in the “alcoholic beverages, tobacco and kola” and communication divisions.
“Year-on-year, the urban index increased at a faster pace for the second consecutive month, increasing by 8.4 per cent in February, 0.2 percentage points from January. During the period, rural prices also increased by 0.2 percentage points from January to 8.3 per cent in February. On a month-on-month basis, both the urban and rural indices increased at a marginally slower pace in February, 0.7 per cent.
The percentage change in the average composite CPI for the 12-month period ending in February over the average of the CPI for the previous 12-month period was 8.1 per cent, holding at the same rate for two consecutive months. The corresponding 12-month year-on-year average percentage change for the urban index was unchanged at 8.2 per cent in February, while the corresponding rural index increased marginally to 8.0 per cent.
After increasing at the same pace (year-on-year) for the previous two months (9.2 per cent), food prices as measured by the food sub-index increased at a faster pace in February, increasing by 9.4 per cent.
On a month-on-month basis, food prices increased at a slower rate in February relative to January. Food prices increased by 0.7 per cent, down from 0.9 per cent. Price increases slowed across most groups that contribute to the food sub-index with the exception being the fish group. On a month-on-month basis, the highest price increases were recorded in the fish, meat, vegetables and potatoes, yams and other tubers groups. The average annual rate of change of the food sub-index for the 12-month period ending in February 2015 over the previous 12-month average was 9.5 per cent. The 12-month rate of change has held steady for nine consecutive months.
The pace of increases in the “All items less farm produce” or Core index, which excludes the prices of volatile agricultural produce strengthened further in February. Prices rose by 7.0 per cent (year-on-year), up from 6.8 per cent in January with the strongest increases recorded in the furnishings & household equipment maintenance and restaurant & hotels divisions.
On a month-on-month basis, the Core sub-index increased at the same pace for the second consecutive month at 0.7 per cent. The highest increases were recorded in the appliances, articles and products for personal care, and fuels and lubricants for personal transport equipment groups, among others. The average 12-month annual rate of rise of the index was recorded at 6.9 per cent for the 12-month period ending in February 2015, unchanged from the 12-month rate recorded in January,” the document, which was made available to Daily Sun said.
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