Inflation Dropped by 11.26% in October – NBS

Inflation rate dropped by 11.26 percent in October 2018, being 0.02 percent points lower than the 11.28 percent recorded in September 2018.

The Consumer Index Report, which measures inflation, released yesterday by the National Bureau of Statistics (NBS) indicated that increases were recorded in all divisions that yielded the Headline index.

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

The report showed that the percentage change in the average composite CPI for the 12-month period ending October 2018 over the average of the CPI for the previous 12 months period was 12.78 percent, from 13.16 percent recorded in September 2018.

The urban inflation rate increased by 11.64 percent in October 2018 from 11.70 percent recorded in September 2018, while the rural inflation rate increased by 10.93 percent in October 2018 from 10.92 percent in September 2018.

On a month-on-month basis, the urban index rose by 0.76 percent in October 2018, from 0.86 percent recorded in September, while the rural index also rose by 0.72 percent in October 2018, down from the rate recorded in September 2018 (0.82 percent).

The composite food index rose by 13.28 percent in October 2018 compared to 13.31 percent in September 2018.

Analysis of the report showed that this rise in the food index was caused by increases in prices of fruits, meat, vegetables, potatoes, yam and other tubers, bread and cereals, and oils and fats.

On month-on-month basis, the food sub-index increased by 0.82 percent in October 2018, from 1.00 percent recorded in September.

The average annual rate of change of the Food sub-index for the 12-month period ending October 2018 over the previous 12-month average was 15.36 percent, from the average annual rate of change recorded in September (15.92 percent).

The Core inflation, which excludes the prices of volatile agricultural produce stood at 9.9 percent in October 2018, up by 0.1 percent from the rate recorded in September 2018 (9.8 percent).

On month-on-month basis, the core sub-index increased by 0.80 percent in October 2018 compared with 0.64 percent recorded in September 2018.

The highest increases were recorded in prices of fuel and lubricants, vehicle spare parts, domestic and household services, carpets and other floor coverings, dental services, hospital services, repair of household appliances and medical services.

The average 12-month annual rate of change of the index was 10.90 percent for the 12-month period ending October 2018 from 11.09 percent recorded in September.