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Nigeria’s inflation rate drops but food prices up

Nigeria’s annual inflation rate marginally slowed for an eighth month in September, easing to 15.98 percent, the National Bureau of Statistics (NBS) said on Tuesday in its latest publication of the Consumer Price Index.

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.

File: Inflation: Market

However, the food price index showed a marginal rise in inflation at 20.32 percent in September, up from 20.25 percent in August.

“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,” NBS  said.

Here is an excerpt from NBS’s latest report:

Increases were recorded in all COICOP divisions that yield the Headline Index. On a month-on-month basis, the Headline index increased by 0.78 percent in September 2017, 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 September2017 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 September2017, 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 twelve-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.

Food price pressure continued into September as all major food sub-indexes increased. 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 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 percent 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 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.

 


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