Nigeria’s October inflation rate rose by 9.3% compared to 9.4% in September, according to the monthly CPI report released by the National Bureau of Statistics. This was the first time Nigeria’s inflation rate will drop month on month since November 2014 when it was 7.93%.
According to the Bureau, the drop in inflation rate was because
the seasonal effects of the Muslim festive period dissipated. The index increased by 0.4%, 0.2% points lower from 0.6% in September, surpassing the lowest pace recorded this year which was recorded in September
The Bureau also noted that food prices edged lower in October due to slower price increases in staple foods;
The slower pace in October was as a result of lower increases in most divisions which contribute to the Headline index with the exceptions being Transport, and Recreation and Culture divisions.
Food prices edged lower in October. The Food sub-index increased by 10.1% during the month, from 10.2% recorded in September. The Food subindex was weighted upon as a result of a slower increase in the Bread and Cereals; Milk, Egg and Cheese; and Potatoes, Yams and Other tuber groups, the latter which has increased at a slower pace for five consecutive months.
All Items less farm produce increased year on year by 8.7% as prices of alcoholic beverages, clothing, furnitures and utilities all inched higher;
Increases in the “All Items less Farm Produce” or Core sub-index eased for the second consecutive month in October. The Core sub-index increased by 8.7% in October (yearon-year), 0.2% points lower from rates recorded in September. The Core subindex was weighted upon by slower increases in multiple divisions in particular; Alcoholic Beverage, Tobacco and Kola; Clothing and Footwear; Housing Water, Electricity. Gas and Other Fuels; and Furnishings & Household Equipment Maintenance divisions.