Analysts at FSDH Research have predicted 14.31 per cent in inflation rate in February 2018 from 15.13 per cent announced earlier this year by the National Bureau of Statistics (NBS).
They explained that the expected decrease in the inflation rate is largely attributable to the base effect of previous year.
“In addition, we note the decrease in some major food prices as well as the slowdown in the price movement in some categories of non-food items in the Consumer Price Index (CPI) basket.
The bureau is expected to release the inflation rate for the month of February 2018 on 14 March, based on its data release calendar.
According to FSDH report, the February 2018 monthly Food Price Index (FPI) from the Food and Agriculture Organization (FAO) shows that the Index averaged 170.8 points, 1.07per cent higher than the revised value for January but 2.68per cent lower than the February 2017 figure.
“The increase in the FPI represented increases in all categories of commodities used in the calculation of the Index except vegetable oil and sugar. The FAO Dairy Price Index appreciated by 6.21per cent in February.
“The prices of products in all the four categories of milk products that constitute the Index firmed up. This increase was mainly supported by strong import demand and lower than expected milk output. The FAO Cereal Price Index increased by 2.55per cent from the previous month.
“The sustained increase recorded in the cereal price Index is as a result of the rise in the prices of wheat, maize and rice. The FAO Meat Index was marginally up by 0.06%. The increase in the prices for bovine meat was offset by decreases recorded in the prices of poultry and pigmeat.
“On the flip side, the FAO Sugar Price Index dropped by 3.45per cent and represents its lowest level in two years. The drop in the Index is on the heels of favourable supply conditions in the main sugar producing regions and last year’s removal of output quotas.
The FAO Vegetable Oil Price Index was down by 3.15per cent. The easing global import demand and rising inventories exerted downward pressure on the prices of palm oil and soy”, the FSDH report stated.