Commodity Price Index Drops By 0.33%
The National Bureau of Statistics has said that the all-commodity group export price index averagely declined by 0.33 percent in Q4, 2021.
It said in its report titled ‘Commodity price indices and terms of trade (Q4, 2021)’ that, “The decline was majorly attributed to decreases in the prices of products of the chemical and allied industries, mineral products, and animal and vegetable fats and oils and other cleavages.”
According to the NBS, the Export Price Index tracks changes in the prices that Nigerian firms receive for the products they export.
It explained, “Increases in the EPI are normally due to either stronger demand abroad or higher production costs in Nigeria. Generally only increases in the EPI due to robust international demand are beneficial to the Nigerian economy as a whole.”
The NBS however noted that the All-commodity group import index on average increased by 0.47 per cent.
The highest increase was recorded by textiles and textile articles, followed by boilers, machinery and appliances, parts thereof and wood and articles of wood, wood charcoal and articles.
According to the bureau, the import price index tracks changes in the prices paid for goods imported to Nigeria.
It explains that the import price index becomes useful in determining whether a change in import volume has actually sprung from a higher foreign demand or from a real increase in prices for foreign goods.
The NBS stated that the All products terms of trade index on average fell by 0.25 percent as a result of decreases in the prices of products of the chemical and allied industries, mineral products and animal and vegetable fats and oil and other cleavage products.