NIGERIAN INFLATION DOWN TO 15.98%, SAYS BUREAU OF STATISTICS

Inflation rate in Nigeria continued its monthly decline year on year, in September this year to 16.98%, compared to 16.01% in August.

According to the National Bureau of Statistics in latest composite price index released today, October 17, for September, this represents the 8th month edging down but importantly, it is the first time since May 2016 that it will fall below 16%.

Since hitting all time high of 18.72% in January 2017, it had been slowly decreasing monthly but stayed above 16% until now. In May 2016, it stood at 15.58% and continued to climb until January this year.

A close study of the rate since the index was introduced since 2009 November as benchmark, shows that double digit inflation was more the rule than the exception between September 2011 and December 2012; from 2009 to June 2011 and in the depression months of 2016.

As usual, food prices were more or less responsible for the inflation rate in September with year on year food index closing at 20.32%, up slightly on August's 20.25%.

Most affected by higher prices, according to the NBS, were potatoes and yam tubers; meat; oils and fats; milk cheese and eggs; bread and cereals and coffee, tea and cocoa.

Urban inflation rate too edged upwards, not downwards as it stood atm 16.18% in September compared to 16.13% in August thus the Rural Index drop from 15.91% to 15.81% accounted more for the marginal decline in inflation rate in September.

Most costly items in September, according to the NBS, were alcoholic drinks; food items and bills for housing, water, electricity, gas and fuel.

On the other hand, the lowest in September were communication with 139.1 index; recreation amd culture with 178.1 and restaurant and hotels with 185.4 index.


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