Inflation rate slows to 15.98% in September- NBS
Drops for eight consecutive months
The Consumer Price Index (CPI) which measures inflation rate slowed to 15.98 per cent in September, 0.03 basis points from 16.01 per cent in August, making it the eight consecutive decline in the rate since January 2017, latest data by the National Bureau of Statistics (NBS) has revealed.
The bureau said food price pressure continued into September, as all major food sub-indexes increased, stressing that separate food price index showed inflation at 20.32 per cent in September, up from 20.25 per cent in August,
According to NBS, “On a month-on-month basis, the Headline index increased by 0.78 per cent in September 2017, 0.19 per cent points lower from the rate of 0.97percent recorded in August.
“The percentage change in the average composite CPI for the twelve-month period ending in September2017 over the average of the CPI for the previous twelve-month period was 17.17 per cent, showing 0.16 per cent point lower from 17.33 per cent recorded in August 2017.
“The Urban index rose by 16.18 percent (year-on-year) in September2017, up by 0.05 percent point from 16.13 per cent recorded in August and the Rural index increased by 15.81 percent in September down from 15.91 per cent in August.
“On month-on-month basis, the urban index rose by 0.84 per cent in September 2017, down from 0.99 per cent recorded in August, while the rural index rose by 0.74 per cent in September 2017, down from 0.95 per cent in August.
“The corresponding twelve-month year-on-year average percentage change for the urban index decreased from 18.15 per cent in August to 17.87 per cent in September, while the corresponding rural inflation rate in September was 16.52 per cent compared to 16.58 per cent recorded in August 2017.
The report by NBS explained further that, “Food price pressure continued into September as all major food sub-indexes increased. The Food Index increased by 20.32 per cent (year-on-year) in September, up marginally by 0.07 per cent points from the rate recorded in August (20.25 per cent).
“The rise in the index was caused by increases in prices of potatoes, yams and other tubers, milk cheese and eggs, bread and cereals, coffee tea and cocoa, soft drinks, fish, meat and oil and fats.
“On a month-on-month basis, the Food sub-index increased by 0.87 per cent in September, down from 1.14percent recorded in August. The average annual rate of change of the Food sub-index for the twelve-month period ending in September 2017 over the previous twelve month average was 18.88 per cent, 0.31 per cent points from the average annual rate of change recorded in August (18.57) percent.
“The ”All Items less Farm Produce” or Core sub-index, which excludes the prices of volatile agricultural produce eased further during the month of September to 12.10 per cent points from 12.30 per cent recorded in August, as all key divisions which contributes to the index increased.”
At the last Monetary Policy Committee of Central Bank Governor (CBN), the Governor, Mr. Godwin Emefiele, said the bank’s monetary policy committee noted that high food inflation in the last few months could be traced to rising prices of farm inputs and supply shortages.
He said the committee also cited the impact of intermittent clashes between farming communities and mostly nomadic herdsmen, as well as weak harvest due to increased flooding of farmlands, as having had affected food prices.
Stories by Motolani Oseni
