Inflation rate drops to 11.26% after two months of consecutive rise

Nigeria’s inflation rate drops to 11.26% for the first time in three months in October

Nigeria’s annual inflation rate dropped to 11.26% in October compared to 11.28% recorded in September, the first decline after two consecutive month-month rises in 2018.

The National Bureau of Statistics (NBS) disclosed this in its latest Consumer Price Index (CPI) report titled ‘CPI and Inflation Report October 2018’, released on Wednesday, November 21, 2018, in Abuja, Nigeria's capital city.

According to the statistics office, the decline represents a 0.09% points decrease on a month on month basis.

“On a month-on-month basis, the Headline index increased by 0.74% in October 2018, down by 0.09% points from the rate recorded in September 2018 (0.83%).

“The percentage change in the average composite CPI for the twelve months period ending October 2018 over the average of the CPI for the previous twelve months period was 12.78%, from 13.16% recorded in September 2018.

“The urban inflation rate increased by 11.64% (year-on-year) in October 2018 from 11.70% recorded in September 2018, while the rural inflation rate increased by 10.93% in October 2018 from 10.92% in September 2018,” the report states.

According to the report, the rise in the prices of Fruits, Meat, Vegetables, Potatoes, Yam and other tubers, Bread and Cereals, Oils and Fats raised the food index by 13.28% in October compared to 13.31% in September 2018.

CBN MPC takes decision on interest rate

Godwin Emefiele, Nigeria's central bank governor ece-auto-gen

The inflation report is coming at a time the Central Bank of Nigeria Monetary committee is meeting to take a decision on the key lending rates.

The committee will deliberate on the country's inflation figures, declines in global Brent crude oil price as well as the 2019 general elections.

The policymakers have retained interest rate at record-high 14% to curb rising inflation since 2016 because price growth remains above the CBN's target band between 6% and 9%.

Analysts, however, have predicted that the policy-setting committee will retain the country's key lending rate.