Finance Nigeria’s inflation rate drops to 16.01%, but has less impact on prices of goods and services

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Nigeria's inflation figure going down but prices of basic commodities are going north and showing no sign of rescinding.

Declining inflation rate in Nigeria has not reduced the cost of living of the people which is now on the increase. play

Declining inflation rate in Nigeria has not reduced the cost of living of the people which is now on the increase.

(SweetCrudeReports)
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The inflation rate in Nigeria has dropped 0.04 percent in the month of August to 16.01 percent year-on-year basis.

This figure is according to the August 2017 CPI report released by the National Bureau of Statistics (NBS) on Friday, September 15, 2017. As such making it the seventh consecutive decline in the rate since January 2017.

However, the report shows an upward trend in the month-on-month (MoM) headline index by 0.97 percent. This indicates that cost of basic necessities in the country is not repealing but better than 1.21 percent recorded in July.

Nigeria's August inflation going down but price of basic commodities are going north. play

Nigeria's August inflation going down but price of basic commodities are going north.

(NBS)

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Nigeria was declared out of the recession by the Q2 2017 GDP report of the bureau issued earlier in the month. But, the mounting prices of goods and services made many Nigerians to question the validity of the recession-exiting report.

Food price pressure was noted for high month-on-month CPI as all major food sub-indexes increased in the month of August.

“The Food Index increased by 20.25 percent (year-on-year) in July, down marginally by 0.03 percent points from the rate recorded in July (20.28 percent). On a month-on-month basis, the Food sub-index increased by 1.14 percent in July, down by 0.38 percent points from 1.52 percent recorded in July.”

Commodities with highest increase in price in August 2017 play

Commodities with highest increase in price in August 2017

(NBS)


Also Read: Nigeria’s inflation rate declines for fourth consecutive month to 16.27%

“The rise in the index was caused by increases in prices of bread and cereals, meat, fish, oils and fats, milk cheese and eggs, coffee, tea and cocoa,” the report says.

Core inflation - which changes in prices of commodities except for agricultural produce, also eased by 0.10 percent on a year-on-year. On a MoM, prices of these essential utilities went up by 0.93 percent.

Urban inflation rose by 0.09 percent to 16.13percent, while the rural inflation was down by 0.17 percent to 15.91 percent in August.