Business
– By Anayo Ezugwu
DESPITE inflation rate in Nigeria declining to 15.98 percent in September from 16.01 percent in August, prices of food items have continued their upward swing in the market. The food index increased by 20.32 percent (year-on-year) in September, up marginally by 0.07 percent points from the rate recorded in August (20.25 percent).
The National Bureau of Statistics, NBS, in its Consumer Price Index, CPI, report for the September, said the rise in the index was caused by increases in prices of potatoes, yams and other tubers. Others are 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 percent in September, down from 1.14 percent recorded in August.
The average annual rate of change of the food sub-index for the 12-month period ending in September 2017 over the previous 12-month average was 18.88 percent, 0.31 percent 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 percent points from 12.30 percent recorded in August as all key divisions which contributes to the index increased.
On a month-on-month basis, the core sub-index increased by 0.80 percent in September, lower from 0.93 percent recorded in August. The highest increases were recorded in clothing materials and articles of clothing, solid fuels, garments, passenger transport by air, motorcycles, shoes and other footwear, furniture and furnishing and nondurable household goods.
The average 12-month annual rate of change of the index was 14.90 percent for the 12-month period ending in September 2017; this is 0.47 percent points lower than 15.37 percent recorded in August.
In spite of the increases in food sector, the NBS said the CPI, which measures inflation increased by 15.98 percent (year-on-year) in September. This was 0.03 percent points lower than the rate recorded in August (16.01) percent making it the eighth consecutive decline in the rate of headline year on year inflation since January 2017. Increases were recorded in all the classification of individual consumption by purpose, COICOP, divisions that yield the headline index.
On a month-on-month basis, the headline index increased by 0.78 percent in September, 0.19 percent 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 September over the average of the CPI for the previous twelve-month period was 17.17 percent, showing 0.16 percent point lower from 17.33 percent recorded in August 2017.
The urban index rose by 16.18 percent (year-on-year) in September, up by 0.05 percent point from 16.13 percent recorded in August and the Rural index increased by 15.81 percent in September down from 15.91 percent in August. On month-on-month basis, the urban index rose by 0.84 percent in September 2017, down from 0.99 percent recorded in August, while the rural index rose by 0.74 percent in September 2017, down from 0.95 percent in August.
The corresponding 12-month year-on-year average percentage change for the urban index decreased from 18.15 percent in August to 17.87 percent in September, while the corresponding rural inflation rate in September was 16.52 percent compared to 16.58 percent recorded in August 2017.
– Oct 17, 2017 @ 15:50 GMT
Tags: Anayo Ezugwu Inflation Drops National Bureau of Statistics NBS
