Food Prices Continue To Rise Despite Drop In Inflation


The UK inflation rate reached its highest point in over five years in September 2017.

Zimstat said the month-on-month inflation rate in September 2017 was 0,38 percent, gaining 0,51 percentage points on the August 2017 rate of minus 0,13 percent.

"This means that prices as measured by the all items Consumer Price Index increased by an average of 0,78 percentage points between September 2016 and September 2017", Zimstat said. Food and non-alcoholic prices rose 5.5% from a year earlier in September‚ after a 5.7% increase in August and a 6.8% rise in July.

The NBS said increases were recorded in all Classification of Individual Consumption According to Purpose (COICOP) divisions that yield the Headline Index.

Under the government's "triple lock" guarantee, the state pension will rise in April each year by whichever number is the highest out of the September CPI inflation number, average earnings or 2.5%. Core inflation increased at a slower pace in September, rising by 12.10 percent, versus 12.30 percent in August.

Consumer price inflation (CPI) increased to 3% in September, up 0.1% from August, the Office for National Statistics (ONS) revealed.

The rise in food prices includes increases in prices of potatoes, yams and other tubers, milk cheese and eggs, bread and cereals, coffee tea and cocoa, soft drinks, fish, meat and oil and fats.

September inflation rose to 0,78 percent following prices increases as foreign currency shortages continued to affect the retail sector but the full effect of the recent wave of price increases will only be felt in the October figures where it is expected to close above 1 percent.

On a month-on-month basis, the Food sub-index increased by 0.87 per cent in September, down from 1.14 per cent recorded in August.

"On month-on-month basis, the urban index rose by 0.84 per cent in September 2017, down from 0.99 per cent recorded in August, while the rural index rose by 0.74 per cent in September 2017, down from 0.95 per cent in August", the report added.

Analysts at the Financial Derivatives Company Limited were, however, of the view that the threat of higher inflation was looming with the commencement of the electoral cycle. He is a member of the Finance Correspondents Association of Nigeria and Capital Market Correspondents Association of Nigeria.