The National Bureau of Statistic (NBS) had revealed that inflation rate dropped to 16.25 per cent in May 2017, 0.99 per cent lower than 17.24 per cent recorded in April. However, analysts at FSDH have predicted that the June 2017 inflation rate will drop to 15.64 per cent from 16.25 per cent recorded in the month of May, 2017.
According to Leadership, the decline reflects fourth consecutive decline in inflation rate since January 2017 as government continued to pump liquidity into the system and increased farm products. FSDH disclosed that the general price movements in the consumer goods and services in June 2017 would increase the Composite Consumer Price Index (CCPI) to 233.25 points, representing a month-on-month increase of 1.18per cent.
It said the increase in the price of food items moderated in the month of June compared with May 2017 adding that it also observed increases in some divisions that contribute to the Core Sub-Index, with the highest price observed in the clothing and footwear divisions.
It noted, “The monthly Food Price Index (FPI) that the Food and Agriculture Organization (FAO) released today shows that the Index advanced further in June 2017. The Index averaged 175.2 points, 1.43per cent higher than the revised value for May 2017, and 6.89per cent higher than the June 2016 figure.
“Movement in the food prices were in varying directions. Dairy, cereal and meat prices were mostly responsible for the uptick in the value of the Index while sugar and oil prices depreciated. The FAO Dairy Price Index appreciated by 8.26per cent in June 2017. Prices of all dairy products which includes milk powders, cheese and butter appreciated significantly during the period. The FAO Cereal Price Index gained 4.21 per cent from the previous month, representing a one-year high.
“Wheat and rice prices firmed up and were primarily responsible for the uptick in the value of the Index. The FAO Meat Index was up by 1.85per cent on the backdrop of generally higher prices as import demand strengthened.’’
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