Inflation drops for the first time in 11 months

The Consumer Price Index (CPI), which measures inflation in Nigeria, dropped for the first time in 11 months to 9.3 percent for the month of October, the National Bureau of Statistics (NBS) has confirmed.

The CPI, which was marginally lower from the 9.4% rate recorded in September, was attributed to “lower increases in most divisions which contribute to the headline index with the exceptions being transport, recreation and culture divisions”.

“Food prices edged lower in October. The Food sub-index increased by 10.1% during the month, from 10.2% recorded in September,” the NBS said in its October report.

“The Food sub index was weighted upon as a result of a slower increase in the Bread and Cereals; Milk, Egg and Cheese; and Potatoes, Yams and Other tuber groups, the latter which has increased at a slower pace for five consecutive months.

“In October, the largest increases were recorded in the books and stationeries, motor cars, liquid fuel (kerosene), and garments groups.”

In September, inflation hit a 10-month high at 9.4 percent, showing that the country last experienced a reduction of monthly inflation 11 months ago, when it fell from 8.06 percent in October to 7.93 in November 2014.

The NBS attributed September’s record high to Muslim holidays, higher food prices among others.

The nation’s inflation rate as at this October 2014 was 8.06 percent, representing a 1.24 percent rise in the space of 12 months, higher that September’s comparative figures.

The CBN has said the Nigerian economy may plunge into recession by 2016 if proactive measures are not taken to curb inflation and other economic realities.