Inflation rate, which measures changes in prices of items, trended upward to its highest in more than 11 years in December 2016.
This beats several analysts’ projections of a moderation to increase to 18.55 per cent.
A report just released by the National Bureau of Statistics showed that the Consumer Price Index (CPI), which measures inflation, rose by 0.07 per cent from 18.48 per cent in November to 18.55 per cent in December, the 11th straight monthly increase.
The report indicated that the increase in the inflation rate was driven by increases in housing, water and electricity, while the food index also rose to 17.39 per cent in December from 17.19 per cent in November.
The report showed that increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yield the headline index with communication and restaurants and hotels recording the slowest pace of growth in December, growing year-on-year at 5.33 percent and 8.91 percent respectively.
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The report showed that the food index rose by 17.39 per cent in December 2016, up by 0.20 per cent points from 17.19 per cent recorded in November. During the month, all major food sub-indexes increased, with soft drinks recording the slowest pace of increase at 7.66 per cent.
Price movements recorded by all items less farm produce or core sub-index rose by 18.10 per cent in December, down by 0.10 per cent points from 18.20 per cent recorded in November.
During the month, the highest increases were seen in housing, water, electricity, gas and other fuels, clothing and footwear and education, growing at 27.27, 21.62 and 17.84 per cent respectively.
On a month-on-month basis, the headline index rose by 1.06 per cent point in December, higher from 0.78 per cent recorded in November.
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