Inflation rate drops by 0.2% – NBS

Semiu Salami
Semiu Salami
Statistician-General of the Federation, Dr Yemi kale

The National Bureau of Statistics (NBS) says inflation rate in October dropped by 0.2 per cent to 7.8 per cent from the 8.0 per cent recorded in September.

This was contained in a statement issued on Thursday in Abuja by the Statistician-General of the Federation, Dr Yemi kale.

“In October, the Consumer Price Index (CPI), which measures inflation, rose by 7.8 per cent year-on-year, a 0.2 per cent point lower than the 8.0 per cent recorded in September.

“Rates recorded in October indicate a continually downward trend for the 10th consecutive month. This is also the lowest rate recorded in the index since March 2008.

“Food prices continued to trend lower for the third consecutive month as a result of the harvest season that traditionally begins in July of the year,’’ Kale said.

According to NBS, the harvest has weighed on prices in the bread and cereals, meat, fish, and dairy classes.

It said that while prices in the potatoes, yam and other tubers classes remained unchanged, prices strengthened in the oils and fats, fruits and vegetables classes.

The bureau said that the core sub index had trended upwards for the fourth consecutive month and that the rate of increase was however tempered by moderation in the housing, water, electricity, gas and other fuels classes.

“The percentage change in the average Composite CPI for the 12 month period ending in Oct. 2013 over the average of the CPI for the previous 12 month period was recorded at 9.2 per cent.

“This represents 0.3 percentage points lower than the average twelve month rate of change of 9.5 per cent recorded in September.

“The corresponding 12-month year-on-year average percentage change for the urban index was 9.8 per cent, while the corresponding rural index was recorded at 8.7 per cent.

“The increase in the core sub-index was as a result of price increases across various class items such as household textiles and clothing materials.

“Other class items include clothing accessories, other articles of clothing, accommodation services and recreational and sporting services.

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