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Inflation rate rises marginally to 9. 3%, says NBS

By Chuka Odittah Abuja   |   14 September 2015   |   2:41 am  

inflationTHE National Bureau of Statistics (NBS) has said that the level of inflation for the month of August rose marginally to 9.3% (year-on-year) from 9.2% in July.

According to the Consumer Price Index (CPI) report made available to The Guardian yesterday, the marginal increase was as a result of slower increases in Alcoholic Beverages, Tobacco and Kola, Health, Transport, Recreation and Culture sub-Divisions.

The bureau said that on a month-on-month basis, the pace of increases of food prices has slowed, contributing to the relatively slower pace of increases reflected on the year-on-year rates between July and August. “The Food Sub-index rose by 10.1% (year-on-year) in August, slightly higher from 10.0% in July.

While increases were observed in major groups within the index: Bread and Cereals, Meats and Fish, the index was weighted upon by a slower increase in the Fruit, Vegetables, and Potatoes, Yams and Other Tubers groups. “The advances recorded by the “All Items less Farm Produce” or Core sub- index increased at a faster pace in August relative to July.

The Core Sub- index increased by 9.0% in August (year-on-year), 0.2 % points from 8.8% in July. Of the COICOP divisions that contribute to the Core sub-index, the largest pressures were recorded in the Housing Water, Electricity, Gas and Other Fuels; Education, Restaurants and Hotels and Miscellaneous Goods and Services divisions.

The pace of increases slowed in the Health, Transportation, and Recreation and Culture divisions, however, it should be noted that the Headline Index is made up of the Core Index and Farm Produce items.

As Processed Foods are included in both the Core and Food sub-indices, this implies that these sub-indices are not mutually-exclusive,” the bureau said.

The report further showed that on a month-on-month basis, the pace of the increase in the Headline index eased for the third consecutive month. The Headline index increased by 0.6% in August, marginally lower from 0.7% in July.

The Headline index increased at a slower rate as all COICOP divisions slowed during the period with the exceptions being Furnishings & Household Equipment Maintenance; Education and Restaurant and Hotels Divisions.

According to the CPI, Urban index increased by 9.2 percent (year-on-year), increasing at the same pace for three consecutive months, while the Rural index increased 0.2% points to 9.4%, from 9.2% in July. On a month-on-month basis, both the Urban and Rural indices increased at a slower pace, increasing by 0.6% in August.

The Urban and Rural indices both grew by 0.7% in July. The percentage change in the average composite CPI for the twelve- month period ending in August over the average of the CPI for the previous twelve-month period was 8.6 percent, marginally higher from the 8.5 percent rate recorded in July.

The corresponding twelve-month year-on- year average percentage change for the Urban index increased marginally from 8.5% to 8.6%, while the corresponding Rural index also edged higher to 8.5% in August from 8.4 percent in July.



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