10th month of slowing inflation
October inflation rates ease even as core inflation still sits at 13.3%. What can we expect this festive season? Click this link to share this newsletter with others.
AGRIC PRODUCE OVERVIEW
Let us jump right into it. But first, let’s put some context to where we are coming from as regards inflation. Inflation could have been dropping. But we need not explain that if this rate is not 0. It means there is an increment from previous months, only not as high as last month. Check our previous newsletter if interested in that.
The benchmark ceiling by the apex bank for inflation is 9% in which for over 6 years as an economy we are yet to be within that bracket. Inflation means an increase in price and this is the reason for our concern. The festive season is now far approaching as we see demand goes up. More corporate demand. We hope the inflation rate can continue to drop.
Could the 10-month drop now bring more relief? Yes and no. First, the yes. If inflation drops that means the prices are not astronomically increasing like before. But still inflation always has a limit as it responds to the demand and supply forces. As people find it hard to buy what they are used to buying, inflation has to fall. But No it brings no relief, especially in this case. Many will say they don’t even feel the impact of the 10th-month consecutive drop because the margin of the drop is insignificant. We should remember that inflation of any number is still an increase.
With all this inflationary pressure there is a need for another kind of supply chain, the one which puts the supply power to whom it is supposed to be with (the producer).
That is what we are building at DayDone