Inflation Dips Further to 15.98% Amid Sustained Pressure on Food Prices

Ndubuisi Francis in Abuja
For the eighth consecutive month, the rate of headline year-on-year inflation declined to 15.98 per cent in September, from 16.01 per cent posted in August, representing a 0.03 per cent points drop.

According to the latest data released by the National Bureau of Statistics (NBS), the Consumer Price Index (CPI), which measures inflation increased by 15.98 per cent (year-on-year) in September 2017.

The September drop is therefore the eighth consecutive decline in the rate of headline year-on-year inflation since January 2017.
The NBS said increases were recorded in all Classification of Individual Consumption According to Purpose (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 0.97per cent recorded in August.
The percentage change in the average composite CPI for the 12-month period ending in September 2017 over the average of the CPI for the previous twelve-month period was 17.17 per cent, showing 0.16 per cent point lower from 17.33 per cent recorded in August 2017.

The urban index rose by 16.18 per cent (year-on-year) in September 2017, up by 0.05 per cent point from 16.13 per cent recorded in August and the rural index increased by 15.81 per cent in September down from 15.91 per cent in August.

On month-on-month basis, the urban index rose by 0.84 per cent in September 2017, down from 0.99 per cent recorded in August, while the rural index rose by 0.74 percent in September 2017, down from 0.95 per cent in August.

The corresponding 12-month year-on-year average percentage change for the urban index decreased from 18.15 per cent in August to 17.87 per cent in September, while the corresponding rural inflation rate in September was 16.52 per cent 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 per cent points from the rate recorded in August (20.25 per cent).
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 per cent in September, down from 1.14 per cent 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 per cent, 0.31 percent points from the average annual rate of change recorded in August (18.57) per cent.

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 per cent points from 12.30 per cent recorded in August, as all key divisions which contribute to the index increased.

On a month-on-month basis, the Core sub-index increased by 0.80 per cent in September, lower from 0.93 per cent 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 non-durable 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 per cent points lower than 15.37 per cent recorded in August.