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Nigeria’s Inflation Eases to 15.90% in November

**As Food Index Slows to 20.30%

By Modupe Gbadeyanka

Data released by the National Bureau of Statistics (NBS) on Sunday night has revealed that in the month of November 2017, the headline inflation slightly dropped to 15.90 percent.

This was 0.01 percent points lower than the rate recorded in October, 15.91 percent, making it the 10th consecutive disinflation (slowdown in the inflation rate though still positive) in headline year on year inflation since January 2017.

According to the stats office, increases were recorded in all COICOP divisions that yield the headline index.

On a month-on-month basis, the headline index increased by 0.78 percent in November 2017, 0.02 percent points higher from the rate of 0.76 percent recorded in October. This represents the first rise in month on month inflation following five consecutive months on month contraction in headline inflation since May 2017.

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The percentage change in the average composite CPI for the 12-month period ending in November 2017 over the average of the CPI for the previous 12-month period was 16.76 percent, showing 0.21 percent point lower from 16.97 percent recorded in October 2017.

Also, the urban inflation rate rose by 16.27 percent (year-on-year) in November from 16.19 percent recorded in October, while the rural inflation rate also eased by 15.59 percent in November from 15.67 percent in October.

On month-on-month basis, the urban index rose by 0.85 percent in November, up by 0.03 from 0.82 percent recorded in October, while the rural index rose by 0.724 percent in November, up by 0.009 when compared with 0.715 percent in October.

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The NBS added that the corresponding 12-month year-on-year average percentage change for the urban index is 17.26 percent in November. This is less than 17.57 percent reported in October 2017, while the corresponding rural inflation rate in November is 16.29 percent compared to 16.41 percent recorded in October 2017.

Business Post gathered from the data that in the month of November, food index moderated to 20.30 percent (year-on-year), down marginally by 0.01 percent points from the rate recorded in October, 20.31 percent.

On a month-on-month basis, the food sub-index increased by 0.88 percent in November, up by 0.03 percent from 0.85 percent recorded in October. This represents the first rise in months on month rise following five consecutive disinflation in month on month inflation since a 2017 high of 2.57 percent in May 2017.

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The average annual rate of change of the food sub-index for the 12-month period ending in November 2017 over the previous 12-month average was 19.39 percent, 0.25 percent points from the average annual rate of change recorded in October, 19.14 percent.

The rise in the index was caused by increases in prices of bread and cereal, milk, cheese, eggs, coffee, tea, cocoa, fish and Oil and fats.

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Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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