Headline Inflation dips Further to 17.93% in May
Nigeria’s headline inflation rate dipped further to 17.93% in May from 18.12% in April, the National Bureau of Statistics (NSB) said on Tuesday. The latest moderation was primarily driven by the temperance in food price pressures that left food inflation at 22.28% year on year from 22.72% in April 2021.
The moderation in food inflation also masked the 40 basis points increase in core inflation to 13.15% year on year in May, from 12.74% in April 2021.
The Bureau of Statistics said increases were recorded in all COICOP divisions that yielded the Headline index. On month-on-month basis, the headline index increased by 1.01 percent in May 2021.
It said this is 0.04 percentage points higher than 0.97 percent recorded in April 2021.Meanwhile, the percentage change in the average composite CPI for the twelve months period ending May 2021 over the average of the CPI for the previous twelve months period was 15.50 percent.
This translates to a 0.46 percent point rise from 15.04 percent recorded in April 2021. The urban inflation rate increased by 18.51 percent (year-on-year) in May 2021 from 18.68 percent recorded in April 2021, while the rural inflation rate increased by 17.36 percent in May 2021 from 17.57 percent in April 2021.
On a month-on-month basis, the urban index rose by 1.04 percent in May 2021, up by 0.05 percentage points compared to 0.99 percent recorded in April 2021. Meanwhile the rural index rose by 0.98 percent in May 2021, up by 0.03 points compared to 0.95 percent recorded in April 2021.
“The corresponding twelve-month year-on-year average percentage change for the urban index is 16.09 percent in May 2021. This is higher than 15.63 percent reported in April 2021, while the corresponding rural inflation rate in May 2021 is 14.94 percent compared to 14.48 percent recorded in April 2021”, NBS stated.
Also, the composite food index rose by 22.28 percent in May 2021 compared to 22.72 percent in April 2021. This rise in the food index was caused by increases in prices of Bread, Cereals, Milk, Cheese, Eggs, Fish, Soft drinks, Coffee, Tea and Cocoa, Fruits, Meat, Oils and fats and Vegetables.
On month-on-month basis, the food sub-index increased by 1.05 percent in May 2021, up by 0.06 percent points from 0.99 percent recorded in April 2021.
The average annual rate of change of the Food sub-index for the twelve-month period ending May 2021 over the previous twelve-month average was 19.18 percent, 0.60 percent points from the average annual rate of change recorded in April 2021 (18.58) percent.
The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 13.15 percent in May 2021, up by 0.41 percent when compared with 12.74 percent recorded in April 2021.
On month-on-month basis, the core sub-index increased by 1.24 percent in May 2021. This was up by 0.25 percent when compared with 0.99 percent recorded in April 2021.
NBS stated that the highest increases were recorded in prices of Pharmaceutical products, Garments, Shoes and other footwear, Hairdressing salons and personal grooming establishments.
Others are Furniture and furnishing, Carpet and other floor covering, Motor cars, Hospital services, Fuels and lubricants for personal transport equipment, Cleaning, repair and hire of clothing, Other services in respect of personal transport equipment, Gas, Household textile and Non-durable household goods.
The average 12-month annual rate of change of the index was 11.50 percent for the twelve-month period ending May 2021; this is 0.25 percent points higher than 11.25 percent recorded in April 2021.
In May 2021, all items inflation on year on year basis was highest in Kogi (25.13%), Bauchi (23.02%) and Sokoto (20.11%), while Katsina (15.69%), Imo (15.52%) and Delta (14.85%) recorded the slowest rise in headline inflation.
On month on month basis however, May 2021 all items inflation was highest in Kogi (2.22%), Ogun (2.17%) and Cross River (2.07%), while Ekiti (0.02%) recorded the slowest rise in headline month on month with River and Sokoto recording price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).
Food Inflation In May 2021, food inflation on a year on year basis was highest in Kogi (32.82%), Kwara (26.02%) and Enugu (25.43%), while Akwa Ibom (20.06%), Bauchi (18.65%) and Abuja (16.91%) recorded the slowest rise in year on year inflation.
On month on month basis however, May 2021 food inflation was highest in Kogi (3.11%), Ogun (2.89%) and Anambra (2.37%), while Edo, Sokoto and Ekiti recorded price deflation or negative inflation.
Headline Inflation dips Further to 17.93% in May
