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Headline Inflation Increased by 11.28% in September 2018; 0.05 Higher Than August 2018 Rate

Nigeria Economy	5308 VIEWS
Nigeria Economy
5308 VIEWS

Tuesday, October 16, 2018 / 08:30 AM / NBS

All Item Index

The consumer price index, (CPI) which measures inflation increased by 11.28 percent (year-on-year) in September 2018. This is 0.05 percent points higher than the rate recorded in August 2018 (11.23) percent.

Increases were recorded in all COICOP divisions that yielded the Headline index.On month-on-month basis, the Headline index increased by 0.84 percent in September 2018, down by 0.21 percent points from the rate recorded in August 2018 (1.05) percent.

The percentage change in the average composite CPI for the twelve months period ending September 2018 over the average of the CPI for the previous twelve months period was 13.16 percent, showing 0.39 percent point from 13.55 percent recorded in August 2018.The urban inflation rate increased by 11.70 percent (year-on-year) in September 2018 from 11.67 percent recorded in August 2018, while the rural inflation rate increased by 10.92 percent in September 2018 from 10.84 percent in August 2018.

On a month-on-month basis, the urban index rose by 0.86 percent in September 2018, down by 0.14 from 1.00 percent recorded in August, while the rural index also rose by 0.82 percent in September 2018, down by 0.14 percent from the rate recorded in August 2018 (0.96) percent.

The corresponding twelve-month year-on-year average percentage change for the urban index is 13.58 percent in September 2018. This is less than 13.95 percent reported in August 2018, while the corresponding rural inflation rate in September 2018 is 12.80 percent compared to 13.21 percent recorded in August 2018.

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Food Index

The composite food index rose by 13.31percent in September2018 compared to 13.16 percent in August 2018. This rise in the food index was caused by increases in prices of Potatoes, yams and other tubers, vegetables, fruits, meat, milk, cheese and egg, Bread and cereals, and Fish.

On month-on-month basis, the food sub-index increased by 1.00 percent in September 2018, down by 0.42 percent points from 1.42 percent recorded in August.

The average annual rate of change of the Food sub-index for the twelve-month period ending September 2018 over the previous twelve-month average was 15.92 percent, 0.58 percent points from the average annual rate of change recorded in August (16.50) percent.

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All Items Less Farm Produce

The ‘’All items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 9.8 percent in September2018, down by 0.2 percent from the rate recorded in August 2018 (10.0) percent.

On month-on-month basis, the core sub-index increased by 0.64 percent in September 2018. This was down by 0.14 percent when compared with 0.78 percent recorded in August 2018.

The highest increases were recorded in prices of, Fuels and lubricants for personal transport, Vehicle Spare parts, Dental services, Tobacco, carpets and other floor coverings, furniture and furnishing, Hospital services.

The average 12-month annual rate of change of the index was 11.09 percent for the twelve-month period ending September 2018; this is 0.19 percent points lower than 11.28 percent recorded in August.

State Profiles

In analysing price movements under this section, note that the CPI is weighted by consumption expenditure patterns which differ across states. Accordingly, the weight assigned to a particular food or non-food item may differ from state to state making interstate comparisons of consumption basket inadvisable and potentially misleading.

All Items Inflation

In September 2018, all items inflation on year on year basis was highest in Kaduna (12.93%), Ebonyi (12.86%) and Bayelsa (12.83%), while Cross River (8.42%), Plateau (8.77%) and Ogun (9.22%) recorded the slowest rise in headline Year on Year inflation.

On month on month basis however, September 2018 all items inflation was highest in Kebbi (1.91%), Kwara (1.89), and Taraba (1.47%), while Cross River, Nasarawa and Plateau all recorded negative inflation or price deflation (general decrease in the general price level of goods and services or a negative inflation rate) in September 2018.

Food Inflation

In September 2018, food inflation on a year on year basis was highest in Kwara (17.17%), Bayelsa (16.62%) and Abuja (15.70%), while Plateau (8.82%), Abia (10.10%) and Ogun (11.11%) recorded the slowest rise in food inflation.

On month on month basis however, September 2018 food inflation was highest in Kwara (3.39%), Adamawa (2.59%) and Kebbi (2.23%), while Katsina, Kogi, Nasarawa, Niger and Plateau 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 September 2018.

Click Here to Download September 2018 CPI PDF Report

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