Inflation Rate Falls To 8.3%

NBS National Bureau of Statistics
NBS National Bureau of Statistics

National Bureau of Statistics says Consumer Price Index, which measures the rate of inflation in the country eased from 8.5 per cent in August to 8.3 per cent in September.

In its September 2014 CPI/Inflation Report, the bureau stated that inflation rate fell by 0.2 per cent marking the first ease in the rate of increase in food prices after increases in the previous six months.

“In September 2014, price increases as observed by the CPI which measures inflation eased from the previous month. Prices rose by 8.3 per cent (yea r-on- year), down by 0. 2 percentage points from 8.5per cent recorded in August.

“The weakened pace of price increases recorded in the headline index in September was as a result of slower increases in food prices as well as other major classification of individual consumption by purpose divisions that yield the headline index.”

NBS said the food index rose by 9.7 per cent in September, down from 10 per cent recorded in August.

It noted that the ease in the increase in food prices was as a result of slower increases in all groups that contribute to the index.

“This was in contrast to observations in August were a broad array of food groups that contribute to the index pushed the index higher. Increase in prices in the All Items less Farm Product or Core sub-index moved at the same pace for the second consecutive month at 6.3 per cent (year- on- year).

“Prices eased in key divisions such as the housing, water, electricity, gas and other fuels as a result of muted increases in housing prices. The division however recorded an increase in prices in the liquid fuels groups”, NBS stated.

Month-on-month, the headline index rose by 0. 55 per cent in September, up from 0.48 per cent in August, a marginal uptick from the previous month, it added.

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