National Bureau of Statistics, NBS has announced that the Consumer Price Index, CPI has dropped to 7.9 per cent in November 2014 from 8.1per cent recorded in October. A statement by the NBS yesterday, stated that the CPI which measures inflation dropped for the third consecutive month.
According the statement, the Prices rose by 7.9 percent (year-on-year), down by 0.2 percentage points from 8.1 percent recorded in October. market-2 The NBS noted that the drop in inflation was as a result of a slower rise in food prices as well as other divisions that yield the Headline index. “The onset of the harvest season has continued to bring consumers a respite from higher food prices after food prices peaked in August. “Prices as measured by the food sub-index rose by 9.1 percent in November, 0.2 percentage points lower from rates recorded in October.
“On a month-on-month basis, food prices increased by 0.6 percent in November, after reaching the year’s low in October. “Following the same trend observed in the Headline index, this is the third consecutive month where advances in food prices have been relatively muted. “While the majority of groups that contribute to the food index declined, price increases were observed in the Vegetables and Coffee, Tea and Cocoa groups. Meats increased at roughly the same pace relative to October,” the Bureau revealed.
Price movements recorded by the “All Items less Farm Produce” or Core sub-index moved at roughly the same pace for the fourth consecutive month at 6.3 percent (year-on-year). Increases were observed in the Liquid and Solid Fuels, Non-durable Household Goods, Garments, and Passenger Transport by Road groups. Other groups and Divisions that contribute to the index exhibited slower increases. 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 Headline index rose by 0.59 percent (month-on-month) in November, marginally higher from 0.51 recorded in October. Prices increased in most COICOP divisions that yield the headline index prices but eased in the Education, Restaurants and Hotels, Alcoholic Beverages, and Tobacco and Narcotics Divisions. Year-on-year, the pace of increase of both Urban and Rural prices eased for the third consecutive month in November. The Urban Composite CPI rose by 7.9 percent, down by 0.2 percentage points from October, while the Rural Composite CPI eased marginally, rising by 7.9 percent in November.
Urban prices increased at a faster pace in November; by 0.6 percent (month-on-month) relative to 0.5 percent recorded in the previous three months. The pace of increases in the Rural All-items index also picked up, increasing by 0.6 percent, from 0.5 percent in October. The percentage change in the average composite CPI for the twelve-month period ending in November over the average of the CPI for the previous twelve-month period was recorded at 8.0 percent. The corresponding 12-month year-on year average percentage change for the Urban index was 8.2 percent in November unchanged from rates recorded in October, while the corresponding Rural index was also unchanged in November increasing by 7.9 percent. – See more at: http://www.vanguardngr.com/2014/12/inflation-drops-7-9-per-cent-november-2014/#sthash.LX5DSoUt.dpuf