Inflation Falls for Fifth Straight Month to 16.1%

Ndubuisi Francis in Abuja

For the fifth consecutive month, the inflation rate dropped further from 16.25 per cent in May to 16.10 per cent in June 2017, indicating a 0.15 per cent points decline.

The National Bureau of Statistics (NBS), in its latest report released Monday, said the Consumer Price Index (CPI), which measures inflation, increased by 16.10 per cent (year-on-year).

The fifth consecutive decline in the rate of inflation since January 2017 showed that on a month-on-month basis, the headline index increased by 1.58 per cent in June 2017, 0.30 per cent points lower than the rate of 1.88 per cent recorded in May 2017.

Also, month-on-month, inflation has cumulatively risen by 9.28 per cent since January 2017.
The food index increased by 19.91 per cent (year-on-year) in June 2017, down by 0.64 per cent points from the rate recorded in May (19.27 per cent), indicating continued pressure on food prices.
Price movements recorded by all items less farm produce or core sub-index rose by 12.50 per cent (year-on-year) in June, down by 0.50 per cent points from the rate recorded in May (13 per cent).

This represented the eighth straight month of decline in the core index since November 2016.
The urban index rose by 16.15 per cent (year-on-year) in June 2017 from 16.34 per cent recorded in May, while the rural index increased by 16.01 per cent in June from 16.02 per cent in May.
On a month-on-month basis, the urban index rose by 1.60 per cent in June as against 1.84 per cent recorded in May.

The rural index also increased by 1.57 per cent in June from 1.92 per cent in May.
According to the NBS, the corresponding 12-month year-on-year average percentage change for the urban index rose from 18.88 per cent in June to 18.69 per cent in May, while the corresponding rural index equally jumped from 16.50 per cent in May to 16.56 per cent in June.

Similarly, the composite food index increased by 19.91 per cent in June 2017.
The rise in the index was attributed to a rise in the prices of meat, bread and cereals, fish, potatoes, yam and other tubers, oils and fats, milk, cheese and eggs, coffee, tea and cocoa.
On a month-on-month basis, the food sub-index increased by 1.99 per cent in June, up by 0.64 per cent points from 2.54 per cent recorded in May.

The average annual rate of change of the food sub-index for the 12-month period ending in June 2017 over the previous 12-month average was 17.87 per cent, 0.39 per cent points from the average annual rate of change recorded in May (17.48 per cent).

The all items less farm produce or core sub-index, which excludes the prices of volatile agricultural produce eased by 0.50 per cent during the month of June to 12.50 per cent points from 13.00 per cent recorded in May, as all key divisions which contribute to the index increased but at a decreasing rate.

Taken on a month-on-month basis, the core sub-index recorded a 1.32 per cent rise in June, 0.15 per cent points above the 1.17 per cent posted in May.

Solid fuels, clothing materials and other articles of clothing and clothing accessories, liquid fuels, spirits, books and stationeries, passenger transport by air, garments, shoes and footwear and motorcycles recorded the highest increases.

According to the NBS, the average 12-month annual rate of growth of the index was recorded at 16.22 per cent for the 12-month period ending in June 2017, indicating a 0.35 per cent points decline from the 12-month rate of change recorded in May.

From 18.55 per cent in December 2016, Nigeria’s inflation rate increased to 18.72 per cent in January 2017 (the highest), dropped to 17.78 per cent in February, 17.26 per cent in March 17.24 per cent in April, and 16.25 per cent in May before declining to the current rate of 16.10 per cent in June.