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Inflation Falls to 11.3% in September

By on October 18, 2012

Inflation Dropped in September as Impact of Fuel Price Hike Began to Subside

The Consumer Price Index fell to 11.3% in September, the lowest this year, as the impact of the fuel increase in January begins to subside.

According to a report from the National Bureau of Statistics, “In September 2012, the composite Consumer Price Index which measures inflation rose to 11.3 percent year-on-year (compared to 11.7 percent in August). The relative moderation in the headline index on a year-on-year basis is largely attributable to the relative slower rise in the “Core” index as the index increased to 13.1 percent (year-on-year) from 14.7 percent in August, while food index increased to 10.2 percent from 9.9 percent over the same period.”

Economic analysts are predicting an increase in inflation across emerging markets over the next six months. In an emailed statement,  Capital Economics of Singapore said, “Headline inflation is set to pick up across most of the emerging world over the next six months, in the wake of global food price increases earlier this year. However, the impact should be short-lived and much smaller than that after food price shocks in the recent past.”