Inflation Drops to 15.91 Percent Foodstuff Prices Crash in October - NBS

Chart in Focus The Consumer Price Index Rose in October

On the average headline year on year inflation for the next five months, June to October, of the year likewise stood at 16.01 per cent.

Compared to October 2016, US retail sales last month increased 4.6%. Control group sales are up a solid 3.5% average annualized rate over the past three months, which suggests spending has solid momentum going into the last quarter of 2017, according to Wells Fargo Securities.

The year-on-year inflation rate is given by the percentage change in the index of the relevant month of the current year compared with the index of the same month in the previous year.

Consumer spending, which accounts for more than two-thirds of USA economic activity, increased at a 2.4 percent annualized rate in the third quarter.

On a month-on-month basis, the Food sub-index increased by 0.85 percent in October, down from 0.87 percent recorded in August.

Sales at online retailers fell 0.3 percent. Prices for food were unchanged over the past month. This gain in the Consumer Price Index followed a 0.5% jump in September.

A sharp drop in telecommunication prices earlier this year is still biasing the measure lower. According to the Zimbabwe National Statistics Agency (Zimstat), this means that prices as measured by all items consumer price index (CPI) increased by an average rate of 2,24 percent between October 2016 and October 2017. Year-over-year forecasts were 2.0% for Headline and 1.7% for Core.

"The rise in the food index, in October 2017 was caused by increases in prices of bread and cereals, meats, oils and fats, coffee tea and cocoa, milk cheese and eggs vegetables and fish", the statistics office said in its report. Data for September was revised to show sales jumping 1.9 percent, which was the largest gain since March 2015, rather than the previously reported 1.6 percent advance. That was enough to push the year-over-year rate of growth in October up to 1.8% after five straight 1.7% readings.

However, food inflation remained high at 20.31 per cent in October, indicating the persistent high prices of food prices during the period. Consumer spending, which accounts for more than two-thirds of United States economic activity, increased at a 2.4 percent annualized rate in the third quarter.

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