Inflation drops lower in June to 16.1%

Annual inflation in Nigeria dropped lower by 0.15 per cent for a fifth straight month in June, slowing to 16.1 per cent, the National Bureau of Statistics (NBS) said in its latest report. A separate food price index however showed inflation at 19.91 per cent, up from 19.27 per cent in May, indicating continued pressure on food prices, the NBS said in a report. Annual inflation slowed in May to 16.25 percent. It recorded its first recent slowing in February.

According to National Bureau of Statistics in its monthly inflation assessment “the Consumer Price Index (CPI) which measures inflation increased by 16.10 percent (year-on-year) in June 2017. This was 0.15 percent points lower than the rate recorded in May, 16.25 percent. Accordingly, this represents the fifth consecutive decline in the rate of inflation since January 2017
“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. Month on Month inflation has cumulatively risen by 9.28 per cent since January 2017. The percentage change in the average composite CPI for the twelve-month period ending in May 2017 over the average of the CPI for the previous twelve-month period was 17.58 per cent, lower from 17.63 per cent recorded in May 2017.”

NBS also said “The Food Index increased by 19.91per cent, year-on-year, in June 2017, down by 0.64 per cent points from the rate recorded in May, 19.27 percent, indicating continued pressure in food prices. Price movements recorded by All Items less farm produce or Core sub-index rose by 12.50 percent, year on-year, in June, down by 0.50 per cent points from rate recorded in May (13.00) percent. This represents the 8th straight month of decline in the core index since November 2016. The Urban index rose by 16.15 percent (year-on-year) in June 2017 from 16.34 percent recorded in May, while the Rural index increased by 16.01 percent in June from 16.02 percent in May.

“On month-on-month basis, the urban index rose by 1.60 percent in June from 1.84 percent recorded in May, while the rural index rose by 1.57 percent in June from 1.92 percent in May. The corresponding twelve-month year-on-year average percentage change for the urban index increased from 18.88 percent in June to 18.69 percent in May, while the corresponding rural index also increased from 16.50 percent in May to 16.56 percent in June. The Composite Food Index rose by 19.91 percent in June 2017.

“The rise in the index was caused by increases in 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 percent in June, up by 0.64 percent points from 2.54 percent recorded in May. The average annual rate of change of the Food sub-index for the twelve-month period ending in June 2017 over the previous twelve-month average was 17.87 percent, 0.39 percent points from the average annual rate of change recorded in May (17.48) percent.“