Report Predicts October Inflation Rate To Rise
FSDH Research expects the inflation rate (year-on-year) to rise further to 11.34 per cent in October from 11.28 per cent recorded in September.
The expected increase in the inflation rate will reflect higher prices observed within the food and non-alcoholic beverages division.
The National Bureau of Statistics is due to release the inflation rate for the month of October on Wednesday, November 14.
The Food Price Index report for the Food and Agriculture Organisation published for the month of October 2018 notes that food prices on the international market decreased from the September levels.
Dairy, meat and oil prices declined sharply, while cereal prices increased slightly and sugar recorded a surge in its price.
Large inventories held by exporting countries, coupled with huge export supplies, weighed negatively on the prices of oil, meat and dairy products.
Sugar prices increased for the second consecutive month due to low production prospects in the major sugar producing regions.
“FSDH Research’s analysis indicates that in October 2018 the value of the naira appreciated at the Nigerian Autonomous Foreign Exchange, while it depreciated at the parallel market.
“At the NAFEX market, the value of the naira appreciated by 0.09 per cent to close at $/N363.40 from $/N363.72 in the prior month, while at the parallel market the naira depreciated by 0.28 per cent to close at $/N362.00 from $/N361 in September 2018. The appreciation recorded in the value of the naira at the NAFEX market should lower the pass through effect of imported inflation in Nigeria.”
It added that, “The prices of food items that FSDH Research monitored in October 2018 moved in varying directions, and led to an overall 0.95 per cent increase in our food and non-alcoholic index.