By Isaac Anumihe
The inflation rate, which began its upward streak over one year ago, has again accelerated to 18.3 per cent (year-on-year) in October 2016, with 0.48 per cent points higher from the rate recorded in September of the same year (17.9 per cent).
The report released by the National Bureau of Statistics (NBS) yesterday said that food index was the major contributory factor as it rose by 17.1 per cent (year-on-year) in October, up by 0.47 per cent points from 16.6 per cent recorded in September.
During the month, all major food groups, which contribute to the food sub-index increased with fruits recording the slowest pace of increase at 11.5 per cent.
Also, it said price movements recorded by the all items less farm produce or core sub-index rose by 18.1 per cent (year-on-year) in October, up by 0.4 per cent points from rates recorded in September (17.7 per cent).
Also in the month, the report noted, the highest increases were seen in housing, water, electricity, gas and other fuels as well as fuels and lubricants for personal transport equipment and education.
“Significant price movement under the Core Sub-index was also recorded for clothing and footwear, which recorded an increase of 17.8 per cent year-on-year. The groups with least growth pace recorded in October were communication (5.7 per cent), restaurants and hotels (9.4 per cent) and recreation and culture (10.3 per cent),” the report said.
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.
Also, on a month-on-month basis, the headline index rose by 0.83 per cent in October, higher from the rate recorded in September (0.81 per cent). The urban index rose by 19.9 per cent (year-on-year) in October from 19.5 per cent recorded in September, and the rural index increased by 16.95 per cent in October from 16.4 per cent in September.
On month-on-month basis, the urban index rose by 0.81 per cent in October from 0.79 per cent recorded in September, while the rural index rose by 0.84 per cent in October from 0.83 per cent in September.
“The percentage change in the average composite CPI for the 12-month period ending in October 2016 over the average of the CPI for the previous 12-month period was 14.2 per cent, higher from 13.5 per cent recorded in September. The corresponding 12-month year-on-year average percentage change for the urban index increased from 14.4 per cent in September to 15.3 per cent in October, while the corresponding rural index also increased from 12.6 per cent in September to 13.3 per cent in October,” the report further explained.