Food, Commodity Price Moderation Slows Inflation to 16.63%

Food, Commodity Price Moderation Slows Inflation to 16.63%

James Emejo in Abuja

The Consumer Price Index (CPI) which measures inflation dropped to 16.63 per cent (year-on-year) in September compared to 17.01 per cent in the preceding month.

According to the National Bureau of Statistics (NBS), the 0.38 per cent reduction in inflation was caused by price moderation in all the parameters that determine the headline index.
According to the CPI figures for September, released yesterday by the statistical agency, the composite food Index rose to 19.57 per cent in September compared to 20.30 per cent in August.

The food index was reflected in the prices of oils and fats, bread and cereals, food product N.E.C., fish, coee, tea and cocoa, potatoes, yam and other tuber and milk, cheese and egg.
The “All items less farm produce’’ or core inflation, which excludes the prices of volatile agricultural produce stood at 13.74 per cent in September up by 0.33 per cent compared with 13.41 per cent recorded in August.

The highest increases were recorded in prices of gas, household textile, garments, motor car, game of chance, and ma­jor household appliances whether electric or not.
Others are passenger transport by air, hospital services, other services in re­spect of personal transport equipment, wine, clothing materials, other articles of clothing and clothing accessories, non-durable household goods.

However, month-on-month, the headline index increased by 1.15 per cent in September, representing a 0.13 per cent rise compared to 1.02 per cent in August.
Urban inflation rate dropped to 17.19 per cent (year-on-year) from 17.59 per cent recorded in August while the rural index increased by 16.08 per cent in the review period from 16.45 per cent in Au­gust.

The NBS stated that month-on-month, the urban index rose by 1.21 per cent in September, up by 0.15 per cent compared to 1.06 per cent August while the rural inflation also rose by 1.10 per cent in September, up by 0.11 per cent when compared to the 0.99 per cent in the preceding month.

The NBS further pointed out that inflation on year-on-year basis was highest in Kogi 20.82 per cent, Gombe 19.09 per cent and Oyo 19.07 per cent while Yobe 14.96 per cent, Edo 14.85 per cent and Kwara 13.70 per cent recorded the slowest rise in the headline inflation.
On month-on-month, however, Ebonyi 3.42per cent, Kano 2.41 per cent and Rivers 1.88 per cent recorded the slowest rise with Zamfara, Benue and Cross River recording price deflation or negative inflation -general decrease in the prices of goods and services or a negative inflation rate.

On the other hand, food inflation year-on-year was highest in Kogi 26.63 per cent, Oyo 22.40 per cent and Gombe 22.16 per cent, while Bauchi 16.35 per cent, Yobe 16.33 per cent and River 15.97 per cent recorded the slowest rise in year-on-year food inflation.
On month-on-month, however, the food index Inflation was highest in Kaduna 2.22 per cent, Ka­no 2.17 per cent and Anambra 2.15 per cent, while Benue 0.23 per cent and Kebbi 0.09 per cent recorded the slowest rise with Zamfara recording price deflation or negative inflation or general decrease in the general price level of food or a negative food inflation rate.

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