NIGERIA'S INFLATION EASED OCTOBER, SAYS BUREAU OF STATISTICS

The National Bureau of Statistics (NBS) Nigeria, has released Consumer Price Index for October 2018 and it shows a slight decrease year on year.

According to the NBS the index grew by 11.26% in October compared to 11.28% growth in September thus putting an end (or punctuating?) consecutively higher growing inflation rates recorded in August and September.

Hitherto, the increasing growth rates recorded in the 2 months had brought on fears that the gradual decline in the inflation rate since the all time highs recorded 4 months up to January 2017 was now in jeopardy.

The inflation had hit all time high of 18.72% in January 2017 before the gradual decline began every month till August this year.

But as usual, the food index continues to drive the CPI. For October, says NBS, the food index grew by 13.28% compared to 13.31% in September but all the same, still higher than the CPI.

The pressures came from price increases noticed in tubers, bread and cereal products; Vegetables, fruits, oil and fats, fish and meat.

Urban price growth also paced the CPI with the Urban index grew b 11.64% in October while rural index clocked 10.92% growth, far below the national rate.

As far as food price increase was concerned, all States in the federation recorded double digit growth rates  with 3 lowest growths being Plateau's 11.36%, Oyo's 11.76% and Bauchi's 12.17% while the top 3 growth states were Bayelsa (16.36%); Abuja FCT (15.85%) and Taraba with 15.27%.

The CPI is calculated from the price of 740 goods and services monitored on monthly basis across the nation.

Of these items covered only those grouped into Communication and Recreation are yet to record indices that indicate that their prices are at least twice relevant prices at base period of December 2009.

By October, the communication index stood at 149.5; still a distance from hitting 200 while that for recreation stood at 194.1.

There could be good reason: Items that make up both groups seem to be those with decreasing relevance in these information technology times.

Listed under communication are telephone, telefax equipment and related services and under recreation and culture are listed audio visual and information processing equipment; photographic development,  musical instruments, recreational services and game of chance.

Under education, books and stationery are monitored but excluded are school fees which perhaps in many places command a good chunk of the education expenses.

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