Inflation Rate To Rise Further in October – FSDH

• Inflation Rate To Rise Further in October – FSDH

The rising cost of goods and services across the country is projected to rise even further in October, according to a report released by the FSDH Research.

FSDH report predicted that consumer prices, which measures inflation rate, would rise from 11.28 percent filed in September to 11.34 percent in October.

The increase, according to FSDH research, will reflect the surge in prices within the food and non-alcoholic beverages division.

The National Bureau of Statistics is expected to release inflation report for the month of October on November 14th.

While the Food Price Index report for the Food and Agriculture Organisation indicated a decrease in food prices on the international market from the level recorded in September, FSDH sees 0.95 percent rise in food and non-alcoholic index.

“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.”

Other reports, attributed the projected rise in prices to flooding in the Northern part of the country and the persistent Farmers-Herdsmen crises.