Inflation Drops For 7th Consecutive Month To 16.01%

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The Consumer Price Index which measures inflation dropped for the seventh consecutive month in 2017  to 16.01 percent in August.

Data released by the National Bureau of Statistics on Friday indicated that the CPI declined by 0.04 percent from 16.05 as recorded in August.

On a month-on-month basis, the NBS report said the headline index increased by 0.97 per cent in August 2017, representing a 0.24 per cent points decline over the rate of 1.21 percent recorded in June.

However, food prices continued to surge, recording an eight-year-high, the statistics office said.

According to the NBS, food index reduced by 0.03% to stand at 20.25% as against 20.28% recorded in July.

“Consumer price index (CPI) which measures inflation increased by 16.01% (year-on-year) in August 2017,” the NBS report read.

“This was 0.04% points lower than the rate recorded in July (16.05%) making it the seventh consecutive decline in the rate of headline year on year inflation since January 2017.

“The urban index rose by 16.13% (year-on-year) in August 2017, down by 0.09% points from 16.04% recorded in July, and the rural index increased by 15.91% in August from 16.08% in July.

“Food price pressure continued into July as all major food sub-indexes increased. The food index increased by 20.28% (year-on-year) in July, up by 0.37% points from the rate recorded in June (19.91%).

“This represents the highest year on year increase in food inflation since the beginning of the new series in 2009.

“Food price pressure continued into August as all major food sub-indexes increased. The Food Index increased by 20.25% (year-on-year) in July, down marginally by 0.03% points from the rate recorded in July (20.28%).”

Analysts attributed the drop to various steps taken by the government to address the economy, which includes the continued intervention by the Central Bank of Nigeria in the foreign exchange market.