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Inflation Dropped To 11.02% In August–NBS

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In spite of the restrictions on importation in the country as well as border closure, the rate at which prices of goods and services rise in Nigeria has maintained a downward trend slowing to 11.02 per cent in August.

The consumer price index (CPI) which measures inflation is 0.06 percent points lower than the 11.08 per cent rate recorded in July 2019 percent, according to data released by the National Bureau of Statistics (NBS) yesterday.

Disinflation continued in August 2019 despite several pronouncements regarding restrictions on the import of some food items, minimum wage and the recent border closures. However, the border was only closed 20 August 2019 with only 11 days of 31days for any significant impact to be felt either way on prices. NBS in the CPI report noted that the inflation rate is measured with the average prices for the whole month and not only the price of goods and services in the last few days of the month. “Furthermore, the harvest season and existing weak consumer demand and their natural effect to slow down food and other prices will also play a major role in determining the direction of inflation.”

Food inflation rose by 13.17 per cent, year on year indicating a slower increase relative to 13.39 per cent recorded in July. The highest increases were recorded in the prices of Oils and fats, Meat, Bread and cereals, Potatoes, yam and other tubers and Fish. On a month-on-month basis, food inflation increased at a slower pace by 1.22 per cent, relative to the 1.26 per cent recorded in the previous month.

NBS in the report said given the continuous stability in the exchange rates, the ‘’All items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 8.68 percent in August 2019, down by 0.12 percent when compared with 8.80 percent recorded in July 2019. On month-on-month basis, the core sub-index increased by 0.67 percent in August 2019. This was down by 0.1 percent when compared with 0.77 percent recorded in July 2019.

The highest increases were recorded in prices of Cleaning, Repair and hire of clothing, Repair of household appliances, Hospital services, Glassware, tableware and household utensils, Passenger transport by air and repair and hire of footwear

The urban inflation rate increased by 11.48 percent year-on-year in August 2019 from 11.43 percent recorded in July 2019, while the rural inflation rate increased by 10.61 percent in August 2019 from 10.64 percent in July 2019.

On a month-on-month basis, the urban index rose by 1.04 percent in August 2019, down by 0.03 from 1.07 percent recorded in July 2019, while the rural index also rose by 0.93 percent in August 2019, down by 0.03 from the rate  recorded in July 2019 (0.96) percent.

Last month, all items inflation on year on year basis was highest in Kebbi with 14.97 per cent, Kano with13.24 per cent and Bauchi with13 per cent, while Cross River at 8.97 per cent,  Delta at 8.63 per cent and Kwara at 8.32 per cent recorded the slowest rise in headline Year on Year inflation.

On month on month basis however, August 2019 all items inflation was highest in Ebonyi (1.59 per cent) Bayelsa (1.59 per cent) and Ogun (1.52 per cent), while Niger (0.29 per cent), Kwara (0.28) recorded the slowest rise with Kogi recording price deflation or negative inflation (general decrease in the general price level of goods and services or a negative inflation rate.

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