The Composite Consumer Price Index (CPI), which measures inflation, climbed sharply to 12.6 per cent in January from 10.3 per cent in December. The 2.2 per cent rise in CPI is a setback for the Central Bank of Nigeria (CBN), which has struggled to contain inflation and stabilise the naira by tightening monetary policy in recent times. According to the January CPI figures released yesterday by the National Bureau of Statistics (NBS), headline inflation had been caused largely by the partial removal of petrol subsidy, which pushed up prices of many food and non-food items following a hike in transportation costs.
The report showed that the Composite Food Index in January 2010 was higher by 13.1 per cent than the result in the corresponding period the previous year. Also, the increase in food inflation was said to have been caused by increasing cost of yam, other tubers, cooking oil, meat, fruit, vegetable and beverages. Year-on-year average annual rate of rise of the index stood at 10.5 per cent for the 12-month period ending January 2012.