Nigeria Inflation Drops To 8 Percent

The figure is the lowest in five years
although experts predicted a lower rate.
Nigeria’s Composite Price Index, CPI,
measuring the average change in the prices
of goods and services, otherwise called
inflation rate, decreased further as
expected in September, shedding 0.2
percent from the previous month to reach
8 percent year-on-year basis.
Financial Derivatives Company, FDC, a
Lagos-based diversified financial institution,
had predicted the rate to drop to about
7.83 percent for the month of September,
extrapolating the economic indicators of
August.
But Inflation Report for the month released
on Wednesday by the Statistician General of
the Federation, Yemi Kale, in Abuja, showed
that the decline in the headline Index,
when compared with the level of the
preceding month, was largely attributable
to a slower rate of increase in food prices,
as the recent harvest season continued to
constrain rising food prices.
The Report showed further that after
trending lower in the first half of the year
(from 11.3 percent in January to 5.5
percent in June), the core sub-index again
trended upwards for the third consecutive
month, while the rate of increase was
tempered by moderations in the “housing,
water, electricity, gas and other fuels”
division as well as the “furnishings,
household equipment and household
maintenance” division.
In the month under review, the NBS report
revealed that the headline index increased
by 0.75 per cent on month-on-month basis,
an increase of 0.5 percentage points from
0.25 per cent recorded in August, indicating
the first uptick in the CPI on a monthly
basis in four months.
A further analysis of the CPI trend revealed
that the urban composite CPI was recorded
at 147.9 points in September, indicating an
8 percent increase from levels recorded in
September 2012, though 0.4 percentage
points lower than the 8.4 per cent recorded
in August this year.
The NBS stated that the percentage change
in the average CPI for the 12-month period
ending September 2013 over the average of
CPI for the previous 12-month period was
recorded at 9.5 per cent, lower than the
average 12-month rate of change of 9.8
percent recorded in August.
It also reported that the corresponding 12-
month year-on-year basis average
percentage change for the urban index was
10.4 per cent, while the corresponding
rural index was recorded at 8.8 percent.
A further analysis of the country’s food
index, showed that in the month under
review, the rate of increase in food prices
moderated for the second consecutive
month, as produce from the on-going
harvest continued to put downward
pressure on the food sub-index with the
9.4 per cent rate recorded in September,
representing 0.3 percentage points lower
than 9.7 per cent recorded in August.
On a month-on-month basis, however, the
food sub-index was reported to have
increased by 0.9 percent in September, up
from 0.5 per cent recorded in August by 0.4
percentage points, with the highest price
increases recorded in the oils and fats, and
bread and cereals classes, amongst others.
The report also showed that the average
annual rate of rise of the food sub-index
for the 12-month period ending in
September 2013 was 10.1 per cent when
compared with the same period in 2012.
This was marginally lower than the 12-
month average year-on-year change for the
period ending in August (10.2 percent).
“All items less farm produce” or core index,
which excludes the prices of volatile
agricultural products, increased for the
second consecutive month in August to 7.2
percent, up by 0.6 percentage points from
the 6.6 per cent recorded in July,” the
statistics agency stated.
A further decomposition of the core sub
index of the “all items, less farm produce”
or core index on a month-on-month basis,
showed that it increased for the third
consecutive month in September to 7.4 per
cent, up by 0.2 percentage points from 7.2
per cent recorded in August, compared to
the month-on-month basis, which showed
that the core sub index was recorded at 0.6
per cent, lower than 1.3 percent recorded
in August by 0.7 percentage points.
The Bureau pointed out that the increase in
the core sub-index was as a result of price
increases across various class items
particularly actual and imputed rental
prices,books and stationeries as a result of
the start of the new school year, and
accommodation services, amongst others.
The average 12-month annual rate of rise
of the index was recorded at 8.9 per cent
in September 2013, down 0.5 percentage
points from 9.4 per cent recorded in
August 2013.
http://premiumtimesng.com/
business/146749-nigeria-inflation-drops-8-
percent.html?utm_source=rss&utm_
medium=rss&utm_campaign=nigeria-
inflation-drops-8-percent

Published with Blogger-droid v2.0.10