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Moderation In Food Prices Slows Inflation Rate To 8.3%

Slight moderation in the prices of food weakened the pace of price increases recorded in September 2014 as inflation rate slowed to 8.3 per cent during the month compared to 8.5 per cent the previous month.

This was the first ease in the rate of increase in food prices after increases in the previous six months.

Data released by the National Bureau of Statistics (NBS), yesterday, indicated that the Food index rose by 9.7 per cent in September, down from 10.0 per cent recorded in August.

The bureau noted that the ease in the increase in food prices was as a result of slower increases in all groups that contribute to the index, in contrast to observations in August where a broad array of Food groups that contribute to the index had pushed the index higher.

Increase in prices in the All Items less Farm Product or Core sub-index moved at the same pace for the second consecutive month at 6.3 per cent (year-on-year).

In September 2014, price increases as observed by the Consumer Price Index (CPI) which measures inflation eased from the previous month. Prices rose by 8.3 per cent (year-onyear), down by 0.2 percentage points from 8.5 per cent recorded in August.

The weakened pace of price increases recorded in the Headline index in September was as a result of slower increases in food prices as well as other major Classification of Individual Consumption by Purpose (COICOP) divisions that yield the Headline index. Prices eased in key divisions such as the Housing, Water, Electricity, Gas and other fuels as a result of muted increases in housing prices. The division, however, recorded an increase in prices in the liquid fuels groups. 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.

On a month-on-month basis, the Headline index rose by 0.55 per cent in September, from 0.48 per cent in August, a marginal uptick from the previous month. Prices increased in all COICOP divisions that yield the headline index except for the Health, Transportation, and Recreation and Culture divisions.


About TransformationWatch

TransformationWatch is an online news site founded by Henry Omoregie It is focused on keeping tabs on the Transformation Agenda set out by the Nigerian leadership in the Local, State and Federal Governments. My mission is to observe, analyze and report milestones or slowdowns in promised service delivery in all the facets of governance in Nigeria (2011 and beyond). Readership is open to all Nigerians and friends of Nigeria alike, regardless of Tribe, Religion or Political divide. We are all in this together


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