FSDH forecasts drop in Nigeria's inflation to 8.2% in Sept

Ahead of the release Nigeria’s inflation rate figure for October 2014 on November 17, 2014 by the National Bureau of Statistics (NBS), the research unit of the FSDH Merchant Bank Limited has forecast an inflation rate (year-on-year) of 8.2 per cent, lower than the September 2014 figure of 8.3 per cent.

In addition it projected the inflation rate for the month of November 2014 to be lower than the October figure.

“Our model indicates that the price movements in consumer goods in October 2014 would increase the Consumer Price Index (CPI) to 162.35 points, representing a month-on-month increase of 0.64,” it said.

To arrive at the forecast, the bank said, an analysis of the average prices of a basket of consumer goods selected from across the country monitored by the FSDH Research in October 2014 showed that there was a general fall in the prices of essential food items during the period due mainly to the harvest season, which led to an increase in the supply of food items in the market.

It said, “There were decreases of 9.17 per cent, 33.33 per cent, 19.64 per cent, 45 per cent and 8.82 per cent in the prices of Garri, tomatoes, yam, palm oil and fish respectively. However, there were increases of 8.33 per cent, 70 per cent, 8.25 per cent and 25 per cent in the average prices of rice, onions, sweet potatoes and Irish potatoes, respectively; while the prices of beans, vegetable oil and meat remained unchanged.

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