Nigeria's Inflation Drops To 8.3% In September – NBS

National Bureau of Statistics (NBS) says the Consumer Price Index (CPI) which measures inflation has dropped to 8.3 per cent in September from 8.5 per cent recorded in August 2014.

A statement by the NBS on Tuesday said in September prices rose by 8.3 per cent (year-on-year), down by 0.2 percentage points from 8.5 percent recorded in August.

The NBS said this was the first drop in the rate of increase in food prices after increases in the previous sixth months.

The statistical agency attributed the reduction to “slower increases in food prices as well as other major Classification of Individual Consumption by Purpose (COICOP) divisions that yield the Headline Index.”

The NBS in the release said: “The weakened pace of price increases recorded in the Headline Index in September was as a result of slower increases in food prices as well as other major Classification of Individual Consumption by Purpose (COICOP) divisions that yield the Headline index.

“The Food index rose by 9.7 per cent in September, down from 10.0 per cent recorded in August. The ease in the increase in food prices was as a result of slower increases in all groups that contribute to the index.

“This was in contrast to observations in August where a broad array of food groups that contribute to the index pushed the index higher.

“Increase in prices in the All Items less Farm Product or Core sub-index moved at the same pace for the second consecutive month at 6.3 per cent (year-on-year).

“Prices eased in key divisions such as the housing, water, electricity, gas and other fuels as a result of muted increases in housing prices.

“The division, however, recorded an increase in prices in the liquid fuels groups.”

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.

On a month on month basis, the Headline Index rose by 0.55 per cent in September, from 0.48 per cent in August, a marginal uptick from the previous month.

Prices increased in all COICOP divisions that yield the headline index except for the Health, Transportation, Recreation and Culture divisions.

After rising at a faster pace for four consecutive months, the pace of increase of both Urban and Rural prices eased in September.

The Urban Composite CPI rose by 8.4 per cent, down from 8.7 per cent in August, while the Rural Composite CPI rose by 8.2 per cent down from 8.4 per cent in the previous month.

On a month on month basis, Urban prices increased at the same pace in September as observed in August. The Urban All Items Index increased by 0.5 per cent.

Prices of The Rural All items Index rose at a faster pace by 0.6 per cent in September, up from 0.5 per cent in August.

The percentage change in the average composite CPI for the twelve-month period ending in September over the average of the CPI for the previous 12-month period was recorded at 8.0 per cent, unchanged from the average t12- month rate of change recorded in August 2014.

The corresponding 12-month year-on-year average percentage change for the Urban Index was 8.2 per cent in September, marginally higher from 8.1 in August, while the corresponding Rural Index increased by 7.9 per cent in September, unchanged from August, the NBS said in the release.