NBS Reports Worst Inflation in November’s CPI

National Bureau of Statistics (NBS) yesterday released its Consumer Price Index (CPI) showing consumer at its highest in four months in November as the impact of the country's worst flooding in 50 years pushed up the cost of food.

For the period, the composite Consumer Price Index which measures inflation rose to 12.3 percent year-on-year (compared to 11.7 percent in October).

On a year-on-year basis, the relative increase in the headline index in November was as a result of higher prices in both the food and core indices.

The core sub-index has deviated from its trend over the previous months, increasing to 13.1 percent, while food prices continue to indicate lagged effects of the floods which occurred from July to Mid-October, as well as other demand and supply conditions.

The Food index increased year on year to 11.6 percent.

Headline also inflation quickened to 12.3 percent year-on-year in November, from 11.7 percent in October and the highest since July.

Food inflation, the biggest contributor to the consumer index, rose to 11.6 percent year-on-year in November, from 11.1 percent in October.

"Higher food prices continue to reflect the impact of recent floods on the production of farm produce, (and the) resulting difficulty of moving food products to markets across the country," the NBS said in a report.

Nigeria's worst flooding in at least half a decade between July and mid-October killed 363 people and displaced 2.1 million, the national emergency agency said.

Core inflation, which excludes volatile agriculture items, jumped to 13.6 percent year-on-year in November, from 12.4 percent in October. The central bank closely watches the core index when making interest rate decisions.

"Increases in the core index was as a result of ... higher housing, electricity, gas (prices) ... in particular rent prices, increased liquid fuel prices such as kerosene ... air transportation costs, and clothing prices," the NBS said.

Nigeria's central bank kept interest rates on hold at 12 percent last month for the seventh time in a row, resisting calls to reduce lending costs because of concerns over inflation. (Reporting by Joe Brock; Editing by Catherine Evans)