CPI Rises to 8.4% in Feb '15 as Predicted; Food Prices Increase Driven by Imported Food Items

The Nationa Bureau of Statistics in its February inflation report, states that the Consumer Price Index (CPI) which measures inflation rose by 8.4 percent (year-on-year), 0.2 percentage points from 8.2 percent recorded in January.

The reports noted that 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.

It further stated that 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.

Meanwhile, the Imported Food sub-index increased by 8.8 percent (year-on-year), the highest increase recorded since February 2013. The Food sub-index rose by 9.4 percent (year-on-year), 0.2 percentage points from January. By groups, 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.