Friday, September 16, 2016 10.03am/NBS
All Items Index
In August the Consumer Price Index (CPI) which measures inflation increased by 17.6% (year-on-year), 0.5% points higher from the rate recorded in July (17.1%). Increases were recorded in all COICOP divisions which contribute to the Headline index reflecting higher prices across the board. The major divisions responsible for accelerating the pace of the increase in the headline index were Housing, Water, Electricity, Gas and Other Fuel, Education and Transportation Services.
The Food Index rose by 16.4 percent (year-on-year) in August, up by 0.6 percent points from 15.8 percent recorded in July. During the month, all the major food groups contributed to the increase in the Food sub-index, however the pace of increase was slowed by Fruits, Potatoes, Yam and other Tubers as well as Oils and Fats, which reported slower increases during the month. In addition, imported foods as reflected by the Imported Food Sub-index increased by 0.2% points from July to 20.7% in August.
Price movements recorded by the All Items less farm produce or Core sub-index increased by 17.2 percent (year-on-year) in August, up by 0.3 percentage points from rates recorded in July (16.9 percent). During the month, the highest increases were seen in Solid fuels, Vehicles parts Books & Stationeries and Clothing and other articles of clothing.
On a month-on-month basis, the Headline index rose by 1.0 percent in August, marginally lower than the 1.3 percent recorded in July. This is the third consecutive month of a slower pace of increase in the Headline Index.
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.
Urban and Rural Prices continued to rise in the month of August. The Urban index increased by 19.3 percent (year-on-year) in August from 18.9 percent recorded in July, while the Rural index increased by 16.1 percent in August from 15.5 percent in July. On a month-on-month basis, both Urban and Rural index increased at a slower pace, as Urban index rose by 0.9 percent in August from 1.4 percent in July, while the Rural index rose by 1.09 percent from 1.12 percent in July.
The percentage change in the average composite CPI for the twelve-month period ending in August 2016 over the average of the CPI for the previous twelve-month period was 12.7 percent, higher from 12.0 percent recorded in July. The corresponding twelve-month year-on-year average percentage change for the urban index increased from 12.8 percent in July to 13.6 percent in August, while the corresponding rural index also increased from 11.4 percent in July to 12 percent in August.
Imported Food items as well as other necessary inputs to producing key local staples such as bread continue to drive the food index higher. The food index increased by 16.4 percent (year-on-year), 0.6 percent points higher from rates recorded in July. The highest price increases were recorded in Meat, Fish, and Bread & Cereals groups.
On a month-on-month basis, the Food sub-index increased at the same pace for two months at 1.2 percent. The average annual rate of change of the Food sub-index for the twelve-month period ending in August 2016 over the previous twelve-month average was 12.7 percent, 0.5 percent points from the average annual rate of change recorded in July (12.2 percent).
All Items Less Farm Produce
Energy prices as well other imported items (such as Vehicle Spare Parts) continue to be key contributors to movements in the Core index. The ‘’All Items Less Farm Produce’’ or Core sub-index, which excludes the prices of agricultural produce increased by 17.2 percent during the month, 0.3 percentage points from the 16.9 percent recorded in July.
On a month-on-month basis, the Core sub-index rose by 0.9 percent in August, 0.3 percentage points lowere than the 1.2 percent in July. The highest increases were reported in vehicle sapre parts, solid fuels, Books & stationeries and Clothing & Footwear groups.
The average 12-month annual rate of rise of the index was recorded at 12.3 percent for the twelve-month period ending in August 2016, 0.7 percent points higher from the twelve-month rate of change recorded in July.