The National Bureau of Statistics has released the Consumer Price Index report, which measures inflation, with the rate dropping year-on-year from 16.01 per cent in August to 15.98 per cent in September.

In the report released on Tuesday in Abuja, the bureau explained that the drop in the nation’s inflation rate in September was the eighth consecutive month that the index would be declining since January this year.

On a month-on-month basis, the NBS stated that the headline index increased by 0.78 per cent in September, in contrast to the 0.97 per cent recorded in August this year.

The national bureau in its report said, “Consumer Price Index, which measures inflation, increased by 15.98 per cent (year-on-year) in September 2017. This was 0.03 per cent points lower than the rate recorded in August (16.01) per cent, making it the eighth consecutive decline in the rate of headline year-on-year inflation since January 2017.

“On a month-on-month basis, the headline index increased by 0.78 per cent in September 2017, 0.19 per cent points lower from the rate of 0.97 per cent recorded in August.”

It stated that the urban index rose by 16.18 per cent (year-on-year) in September 2017, up by 0.05 per cent point from 16.13 per cent recorded in August, while the rural index increased by 15.81 per cent in September, down from 15.91 per cent 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.

Economists and financial analysts stated that the marginal drop in Nigeria’s inflation was attributable to the widespread ease in food commodity prices usually associated with early harvest.

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.

“This is because the incumbent government will roll out a series of people-friendly disbursements and initiatives,” they said in their bulletin on inflation that was made available to our correspondent in Abuja.

They also said, “This sustained but marginal reduction (in inflation) can be partially attributed to the effect of tight liquidity in the system, evidenced by a contraction in money supply by 11.06 per cent to N21.85tn in August. We noticed a widespread ease in commodity prices, usually associated with early harvest.”