By Babajide Komolafe
Inflation rate dropped to 13.4 per cent in October from 13.6 per cent in September, said Federal Bureau of Statistics. The Bureau attributed the decrease to slight decrease in the prices of some food items like yam, potatoes and other tubers due to the harvest season.
Inflation rate measures the rate of increase in the prices of goods and services in the country and it is measured with the consumer price index. The report of the BOS implies that the rate at which prices of goods and services increased in Octomer was 13.4 per cent. It does not mean that prices increased by 13.4 per cent.
The Bureau stated, ‘’ The Composite Consumer Price Index (CPI) rose by 13.4 percent year-on-year in October 2010. This is slightly lower than 13.6 percent recorded in the previous month in the new CPI series. The monthly change of the CPI was 0.3 percent increase when compared with September 2010.
The urban All Items monthly index rose by 0.5 percent while the corresponding rural index recorded 0.1 percent increase when compared with the preceding month. The year-on-year average consumer price level as at October 2010 for Urban and Rural dwellers rose by 11.5 and 15.0 percent respectively.
The percentage change in the average composite CPI for the twelve-month period ending October 2010 over the average of the CPI for the previous twelve-month period was 13.9. This was marginally higher than what was recorded by making similar comparison in September 2010.
The corresponding 12- month average percent change for urban and rural indices rose by 10.7 and 15.8 respectively.
‘’FOOD INDEX: Average monthly Food prices remained stable in October 2010 when compared with September of same year. The level of the Composite Food Index was higher than the corresponding level a year ago by 14.1 percent.
The average annual rate of rise of the index was 14.9 percent for the twelve-month period ending October 2010. The marginal fall in the index was caused mainly by slight decrease in the prices of some food items like yam, potatoes and other tubers due to the harvest season.
ALL ITEMS LESS FARM PRODUCE: The “All items less Farm Produce” index which excludes the prices of agricultural products rose by 1.1 percent in October 2010 when compared with September 2010. The increase was due to price rise observed with some pharmaceutical products and household equipments. In the twelve-month to October 2010, the index rose by 13.2 percent while the average annual rate of rise of the index was 12.3 percent for the twelve-month period ending October 2010.