Inflation drops to 11.26% after two months of consecutive rise

The National Bureau of Statistics (NBS) on Wednesday released the Consumer Price Index Report which measures inflation with inflation rate dropping from 11.28 per cent in September to 11.26 per cent in October. This decline was the first after two consecutive month-month rises in 2018.
The bureau in its report which was made available to Business Hallmark stated that year-on-year, the 11.26 per cent represents a decline of 0.02 percentage points
It said that urban inflation rate increased by 11.64 per cent year-on-year in October 2018 from 11.70 per cent recorded in September.
On the other hand, the NBS report said the rural inflation rate increased to 10.93 per cent in October from 10.92 per cent in September.
On a month-on-month basis, the report stated that the urban index rose by 0.76 per cent in October, from 0.86 per cent recorded in September.
It added that the rural index also rose by 0.72 per cent in October, down from the 0.82 per cent rate recorded in September.
Food prices in four states of the country experienced negative inflation between September and October 2018.
According to the consumer price index (CPI)/Inflation report, the states are Akwa Ibom, Benue, Kwara and Ondo.
“On month-on-month basis, the Headline index increased by 0.74 percent in October 2018, down by 0.09 percent points from the rate recorded in September 2018 (0.83) percent,” the report read.
“The percentage change in the average composite CPI for the twelve months period ending October 2018 over the average of the CPI for the previous twelve months period was 12.78 percent, from 13.16 percent recorded in September 2018.
“The composite food index rose by 13.28 percent in October 2018 compared to 13.31 percent in September 2018.
“In October 2018, food inflation on a year on year basis was highest in Bayelsa (16.36%), Abuja (15.85%) and Taraba (15.27%), while Bauchi (12.17%), Oyo (11.76%) and Plateau (11.36%) recorded the slowest rise in food inflation.
“On month on month basis however, October 2018 food inflation was highest in Kogi (2.28%), Plateau (2.42%) and Nasarawa (2.17%), while Akwa Ibom, Benue, Kwara and Ondo all recorded food price deflation or negative inflation (general decrease in the general price level of goods and services or a negative inflation rate) in October 2018.”
Analysis of the report showed that this rise in the food index was caused by increases in prices of Fruits, Meat, Vegetables, Potatoes, yam and other tubers, Bread and cereals, and Oil and Fats.