Inflation drops by 0.06% in August- NBS
The National Bureau of Statistics (NBS), says inflation rate in August 2019 reduced by 0.06 per cent to 11.02 per cent from 11.08 per cent recorded in July.
It said this in the “Consumer Price Index (CPI), August 2019” report it released on Tuesday in Abuja.
The report, however, said that inflation increased by 11.02 per cent (year-on-year) in August 2019.
“Accordingly, disinflation continued in August 2019 in spite of several pronouncements regarding restrictions on the import of some food items, minimum wage and the recent border closures.
“It is important to note that with respect to the latter, the border was only closed on Aug. 20, 2019, with only 11 days of 31 days for any significant impact to be felt either way on prices,“it said.
The NBS said that the inflation rate was also the average prices for the whole month and not only the price of goods and services in the last few days of the month.
It added that the harvest season and existing weak consumer demand and their natural effect to slow down food and other prices also played a major role in determining the direction of inflation.
“Against this backdrop, in August 2019, all major indices slowed except urban inflation year on year.
“On month-on-month basis,the Headline index increased by 0.99 per cent in August. This is 0.02 per cent rate lower than the rate recorded in July (1.01) per cent,“it said.
According to the NBS, the percentage change in the average composite CPI for the twelve months period ending August over the average of the CPI for the previous twelve months period is 11.27 per cent, showing 0.02 per cent point from 11.29 per cent recorded in July.
It also said that the urban inflation rate increased by 11.48 per cent (year-on-year) in August from 11.43 per cent recorded in July, while the rural inflation rate increased by 10.61 per cent in August from 10.64 per cent in July.
“On a month-on-month basis, the urban index rose by 1.04 per cent in August, down by 0.03 from 1.07 per cent recorded in July, while the rural index also rose by 0.93 per cent in August, down by 0.03 from the rate recorded in July (0.96) per cent.
“The corresponding twelve-month year-on-year average percentage change for the urban index is 11.62 per cent in August. This is less than 11.64 per cent reported in July, while the corresponding rural inflation rate in August is 10.95 per cent compared to 10.97 per cent recorded in July,“it said.
The report said that composite food index rose by 13.17 per cent in August compared to 13.39 per cent in July.
It said that the rise in the food index was caused by increases in prices of oils and fats, meat, bread and cereals, potatoes, yam and other tubers and fish.
“On a month-on-month basis, the food sub-index increased by 1.22 per cent in August, down by 0.04 per cent points from 1.26 per cent recorded in July.”
The NBS also said that given the continuous stability in the exchange rates, the ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 8.68 per cent in August, down by 0.12 per cent when compared with 8.80 per cent recorded in July 2019.
It said that the highest increases were recorded in prices of cleaning, repair and hire of clothing, repair of household appliances, hospital services, glassware, tableware and household utensils, passenger transport by air and repair and hire of footwear.
News Agency of Nigeria (NAN) reports that CPI measures the average change over time in prices of goods and services consumed by people for day-to-day living.