National Bureau of Statistics (NBS) says Consumer Price Index, (CPI) which measures inflation, increased by 11.98 per cent year-on-year in December 2019. The NBS made this known in its CPI and Inflation Report of December 2019. The observed rising inflation trend could continue with the 50 per cent increase in VAT which will make goods and services cost more. NBS said the CPI report for December recorded an inflation rise by 0.13 per cent points compared to the 11.85 percent rate recorded in November 2019. “Increases were recorded in all Classification Of Individual Consumption by Purpose (COICOP) divisions that yielded the headline index.
NBS report said “The consumer price index, (CPI) which measures inflation increased by 11.98 per cent (year-on-year) in December 2019. This is 0.13 per cent points higher than the rate recorded in November 2019 (11.85) percent. Increases were recorded in all COICOP divisions that yielded the Headline index. On month-on-month basis, the Headline index increased by 0.85 percent in December 2019, this is 0.17 percent rate lower than the rate recorded in November 2019 (1.02) percent. The percentage change in the average composite CPI for the twelve months period ending December 2019 over the average of the CPI for the previous twelve months period was 11.40 percent, showing 0.05 percent point from 11.35 percent recorded in November 2019. The urban inflation rate increased by 12.62 percent (year-on-year) in December 2019 from 12.47 percent recorded in November 2019, while the rural inflation rate increased by 11.41 percent in December 2019 from 11.30 percent in November 2019.
“On a month-on-month basis, the urban index rose by 0.90 percent in December 2019, down by 0.17 from 1.07 percent recorded in November 2019, while the rural index also rose by 0.82 percent in December 2019, down by 0.16 from the rate recorded in November 2019 (0.98) percent. The corresponding twelve-month year-on-year average percentage change for the urban index is 11.83 percent in December 2019. This is higher than 11.75 percent reported in November 2019, while the corresponding rural inflation rate in December 2019 is 11.00 percent compared to 10.98 percent recorded in November 2019. The composite food index rose by 14.67 percent in December 2019 compared to 14.48 percent in November 2019. This rise in the food index was caused by increases in prices of Bread and cereals, Meat, Fish, Oils and fats, Potatoes, yam and other tubers.
“On month-on-month basis, the food sub-index increased by 0.97 percent in December 2019, down by 0.28 percent points from 1.25 percent recorded in November 2019. The average annual rate of change of the Food sub-index for the twelve-month period ending December 2019 over the previous twelve-month average was13.74 percent, 0.09 percent points from the average annual rate of change recorded in November 2019 (13.65) percent. The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at9.33 percent in December 2019, up by 0.34 percent when compared with 8.99 percent recorded in November 2019. On month-on-month basis, the core sub-index increased by 0.81 percent in December 2019. This was up by 0.02 percent when compared with 0.79 percent recorded in November 2019.
“The highest increases were recorded in prices of Hospital services, Hairdressing saloons and personal grooming establishment, Garments, Repair and hire of footwear, Vehicle spare parts, Passenger transport by air, Shoes and other footwear, Appliances, articles and products for personal care, Clothing materials, other articles of clothing and clothing accessories and Cleaning, Repair and hire of clothing, The average 12-month annual rate of change of the index was 9.15 percent for the twelve-month period ending December 2019; this is 0.04 percent points lower than 9.19 percent recorded in November 2019”.
