Inflation rate drops by 0.37% in June
Nigeria’s inflation rate has dropped to 11.23percent (year-on-year) from 11.61percent recorded in May 2017, making it the 17th consecutive month that the index would be recording continuous decline since January 2017.
The National Bureau of Statistics reports that the Consumer Price Index, which measures inflation rate, dropped by 0.37percentage points less than the rate recorded in May this year.
NBS in its CPI report for June shows that increases were recorded in all the Classification of Individual Consumption by Purpose, COICOP, divisions that yielded the headline index.
The report reads in part, “The Consumer Price Index, which measures inflation, increased by 11.23 percent year-on-year in June 2018. This is 0.37percent points less than the rate recorded in May 2018 (11.61percent), and represents the seventeenth consecutive disinflation since January 2017.”
On a month-on-month basis, the bureau said the Headline Index increased by 1.24percent in June, up by 0.15percent points from the rate recorded in May.
The report stated that the urban inflation rate eased to 11.68percent year-on-year in June, from 12.08percent recorded in May, while the rural inflation rate also eased to 10.83percent in June from 11.20percent in May.
On a month-on-month basis, the urban index rose by 1.24percent in June, up by 0.14 from 1.10 percent recorded in May, while the rural index also rose by 1.23percent in June, up by 0.15percent from the rate recorded in May.
According to the report, the corresponding twelve-month year-on-year average percentage change for the urban index was 14.71percent in June 2018. This, it stated was less than the 15.10percent reported in May 2018, while the corresponding rural inflation rate in June 2018 was 14.08percent compared to 14.53percent recorded in May 2018.
Meanwhile, the NBS notes that the composite food index rose by 12.98percent in June (13.45percent in May 2018). The rise in the food index NBS says, was caused by increases in prices of potatoes, yam and other tubers.
The rise was also caused by increase in prices of bread and cereals, fish, oils and fats, milk, cheese and eggs, vegetables and fruits as well as meat.
On a month-on-month basis, Food sub-index increased by 1.57 percent in June 2018, up by 0.24percent points, from 1.33percent recorded in May 2018. Meanwhile the average annual rate of change of the Food sub-index for the twelve-month period ending June was 17.75 percent, down by 0.61percent points from the 18.36percent recorded in May.
The report noted that inflation on a year-on-year basis was highest in Rivers State (13.82percent), Kebbi (13.61percent) and Adamawa (13.41percent), while Kwara (8.16percent), Benue (9.28percent) and Plateau (9.49percent) recorded the slowest rise in headline year-on-year inflation.