Inflation slows to 16% in August

The rate at which prices of goods and services change in the country has decline marginally but that of foods item has continued to rise according to the National Bureau of Statistics. This mean that Nigerians are still paying higher for food items in the market place.

According to National Bureau of Statistics Inflation report for the Month of August “on a month-on-month basis, the headline index increased by 0.97 per cent in August 2017, 0.24 per cent points lower from the rate of 1.21 per cent recorded in July. The percentage change in the average composite CPI for the twelve-month period ending in August 2017 over the average of the CPI for the previous twelve-month period was 17.33 per cent, 0.14 percent point lower from 17.47 per cent recorded in July 2017.

The Urban index rose by 16.13 percent (year-on-year) in August 2017, down by 0.09 percent point from 16.04 percent recorded in July, and the Rural index increased by 15.91 percent in August from 16.08 percent in July. The Consumer Price Index (CPI) which measures inflation increased by 16.01 percent (year-on-year) in August 2017. This was 0.04 percent points lower than the rate recorded in July (16.05) percent making it the seventh consecutive decline in the rate of headline year on year inflation since January 2017. Increases were recorded in all COICOP divisions that yield the Headline Index.

Food price pressure continued into August as all major food sub-indexes increased. The Food Index increased by 20.25 percent (year-on-year) in July, down marginally by 0.03 percent points from the rate recorded in July (20.28 percent). The rise in the index was caused by increases in prices of bread and cereals, meat, fish, oils and fats, milk cheese and eggs, coffee, tea and cocoa. On a month-on-month basis, the Food sub-index increased by 1.14 percent in July, down by 0.38 percent points from 1.52 percent recorded in July.

The average annual rate of change of the Food sub-index for the twelve-month period ending in August 2017 over the previous twelve month average was 18.57 percent, 0.32 percent points from the average annual rate of change recorded in June (18.25)percent. The ”All Items less Farm Produce” or Core sub-index, which excludes the prices of volatile agricultural produce eased by 0.10 percent during the month of August to 12.30 percent points from 12.20 percent recorded in July as all key divisions which contributes to the index increased.

On a month-on-month basis, the Core sub-index increased by 0.93 percent in August, 0.07 percent points lower from 1.00 percent recorded in July. The highest increases were recorded in clothing materials and articles of clothing, garments, passenger transport by air, motorcycles, shoes and other footwear, furniture and furnishing, books and stationary, non-durable household goods, pharmaceutical products and maintenance, repair of personal transport equipment and glassware, tableware & household utensils. The average 12-month annual rate of rise of the index was recorded at 15.37 percent for the twelve-month period ending in August 2017, 0.43 percent points lower from the twelve month rate of change recorded in July.