Nigeria’s inflation increases in Sept. -NBS

Marco Green
October 17, 2018

Inflation has fallen by more than expected to a three-month low.

The figures are likely to reassure Bank of England officials who forecast in August that inflation would average around 2.5 percent over the July-September quarter. The news, which will be welcomed by consumers, follows yesterday's rise in wage growth.

The National Bureau of Statistic (NBS), in its latest CPI report published on Tuesday, said the figure climbed again, albeit marginally, by 1.05 per cent, from 11.23 per cent in August to 11.28 per cent in September.

That backed up the Bank of England's view that a long period of weak pay increases is ending, and that it should raise interest rates in response.

FILE PHOTO: A shopper pushes a trolley in a supermarket in London, Britain April 11, 2017.

It comes as wages are growing at their fastest pace in almost a decade at 3.1%.

Raw materials prices rose 7.3 percent in September from a year earlier, down from a 7.8 percent increase in August, according to the statistics bureau. It still remained comfortably below China's inflation goal of 3 per cent for 2018, same as past year.

It was only the second hike since the global financial crisis a decade ago and was in response to United Kingdom annual inflation holding stubbornly above the BoE's official 2.0-percent target.

Consumer price inflation hit a five-year high of 3.1 percent in November, when the inflationary effect of the pound's tumble after Brexit vote in June 2016 reached its peak.

Mike Hardie, head of inflation at the ONS, said: "Food was the main downward pull on inflation as last year's September price rises failed to reappear, while ferry prices dropped after their surprisingly high summer peak".

Still, there could be more short-term pressure in the pipeline for consumer prices.

"The urban inflation rate increased by 11.70 percent (year-on-year) in September 2018 from 11.67 percent recorded in August 2018, while the rural inflation rate increased by 10.92 percent in September 2018 from 10.84 percent in August 2018".

That was a bigger rise than any economist had forecast in the Reuters poll that had pointed to a rise of 9.2 percent.

However, the food sub-index was one percent in September compared to the 1.42% recorded in August 2018.

On a monthly basis, the PPI picked up to 0.6 percent from 0.4 percent in August.

Other reports by Click Lancashire

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