Inflation rate drops to 7.9% – NBS
The monthly report published yesterday by the National Bureau of Statistics (NBS) stated that the inflation rate fell for the third consecutive month this year by 0.2 percentage points to 7.9 per cent in November.
The rate was 8.1 per cent in the preceding month.
NBS stated that the weakened pace of price increases recorded in the headline index in the month was as a result of slower increases in food prices including other major Classification of Individual Consumption by Purpose, COICOP, that yielded the index.
According to the Bureau, the Food index which peaked at 10 per cent in August, moderated to 9.1 per cent in the month, representing 0.2 per cent points lower than the 9.3 percentage points of October.
The NBS reported that the ease in the increase in food prices for the third consecutive month was as a result of slower increases in all groups that contributed to the index, adding however that while most of the groups that accounted for the price index declined in prices, cost of vegetables and coffee, tea and cocoa groups and meat increased at roughly the same pace relative to the preceding month.
The Bureau reported further that price movements recorded by the All Items less Farm Produce or Core sub-index moved at the same pace for the fourth consecutive month at 6.3 per cent year-on-year.
However, it noted that increases were observed in the Liquid and Solid Fuels, Non-durable Household Goods, Garments and Passenger Transport by Road groups, just as other groups and divisions contributing to the index exhibited lower increases in prices. On a month-on-month basis, the NBS reported that the headline index rose by 0.59 per cent in the month under review, compared with 0.51 per cent recorded in October.
The Bureau stated: 'Year on year, the pace of increase of both urban and rural prices eased for the third consecutive month in November. The Urban Composite CPI rose by 7.9 per cent, down by 0.2 per cent points from October, while the Rural Composite CPI eased marginally, rising by 7.9 per cent in November.
'Urban prices increased at a faster pace in November, by 0.6 per cent (monthon- month) relative to 0.5 per cent recorded in the previous three months. The pace of increases in the Rural All Items index also picked up, increasing by 0.6 per cent from 0.5 per cent in October.'
Also, it reported that the percentage change in the average composite CPI for the 12-month period ending in November over the average of the CPI for the previous 12-month period was recorded at eight per cent, unchanged from rates recorded in October.
Similarly, the agency reported that the corresponding 12-month year-on-year average percentage change for the urban index was 8.2 per cent in the month under review, unchanged from rates recorded in October, while the corresponding rural index remained unchanged at 7.9 per cent for the two months.