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Harvest Season Slows Inflation Rate To 8% In September


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Nigeria

IMAGE: Corn Harvest »

Oct.17.2013

 

Headline inflation growth rate inched lower to 8.0 per cent in September, following constrained food prices as a result of the recent harvest of major food items.

Data from the National Bureau of Statistics (NBS) indicated that the Consumer Price Index (CPI) which measures inflation rose by 8.0 per cent year-on-year, 0.2 percentage points lower from 8.2 per cent recorded in August.

The year-on-year rate for the Headline index continues to trend downwards from the 9.0 per cent recorded in January 2013.

In September, the rate of inflation slowed for a second consecutive month, after a slight uptick in July.

According to the data, this was largely as a result of a slower rate of increase in food prices as the recent harvest season continues to constrain rising food prices. Compared to August, prices trended lower in most food classes except for the dairy products (milk, eggs and cheese), and oils and fats classes

The core sub-index has trended upwards for the third consecutive month (after trending lower in the first half of the year). The rate of increase was however tempered by moderations in the “Housing Water, Electricity, Gas and Other fuels” division as well as the “Furnishings, Household Equipment and Household Maintenance” division.

It should be noted that the Headline Index is made up of the Core Index and Farm Produce items. As Processed Foods are included in both the Core and Food sub-indices, this implies that these sub-indices are not mutually-exclusive.

In September, the Headline index increased by 0.75 per cent month on month, an increase of 0.5 percentage points from 0.25 per cent recorded in August. This was the first uptick in the CPI on a monthly basis in four months.

The Urban composite CPI was recorded at 147.9 points in September, an 8.0 percent increase from levels recorded in September 2012. This was also 0.4 percentage points lower than the 8.4 per cent recorded in August.

The corresponding Rural National CPI recorded an 8.0 per cent year-on-year change in September, marginally lower from the 8.1 per cent recorded in August.

On a month-on-month basis, the Urban All-items index increased by 0.8 per cent in September; up by 0.5 percentage points, from the 0.3 percent recorded in August, while the Rural All Items index increased by 0.74 per cent up from 0.2 per cent recorded in August.

The percentage change in the average Composite CPI for the twelve-month period ending in September 2013 over the average of the CPI for the previous twelve-month period was recorded at 9.5 per cent, lower than the average twelve month rate of change of 9.8 percent recorded in August.

 

 

Article Credit: Leadership

Updated 6 Years ago
 

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