Nigeria’s Inflation Worries Ease 18 Basis Points to 17.75%
Nigeria’s headline inflation rate moderates further in June, marking the third consecutive month of decline to 17.75% from 17.93% in May 2021, according to the National Bureau of Statistics (NBS) report. Pressure on the average price level started dropping in April, the slowdown that analysts attributed to low-base effects.
The report said the consumer price index, (CPI) which measures inflation (rate of change in the increase in prices) increased by 17.75 per cent (year-on-year) in June 2021.
The inflation figure for June is 0.18 percentage points lower than the rate recorded in May 2021 (17.93) per cent, which implies that prices continued to rise in June 2021 but at a slightly slower rise than it did in May 2021.
NBS report shows that increases were recorded in all classification of individual consumptions by purpose (COICOP) divisions that yielded the headline index.
On a month-on-month basis, the Headline index increased by 1.06 per cent in June 2021. This is 0.05 percentage points higher than the rate recorded in May 2021 (1.01 per cent).
The percentage change in the average composite CPI for the twelve months period ending June 2021, over the average of the CPI for the previous twelve months period was 15.93 per cent, representing a 0.43 percentage point increase over 15.50 per cent recorded in May 2021.
NBS noted that the urban inflation rate increased by 18.35 per cent (year-on-year) in June 2021 from 18.51 per cent recorded in May 2021, while the rural inflation rate increased by 17.16 per cent in June 2021 from 17.36 per cent in May 2021.
On a month-on-month basis, the urban index rose by 1.09 per cent in June 2021, up by 0.05 points compared to the rate recorded in May 2021 (1.04 per cent), while the rural index also rose by 1.02 per cent in June 2021, up by 0.04 percentage points over the rate that was recorded in May 2021 (0.98) per cent.
“The corresponding twelve-month year-on-year average percentage change for the urban index was 16.51 per cent in June 2021.
“This is higher than 16.09 per cent reported in May 2021, while the corresponding rural inflation rate in June 2021 was 15.36 per cent compared to 14.94 per cent recorded in May 2021.
“The composite food index rose by 21.83 per cent in June 2021 compared to 22.28 per cent in May 2021. (This implies that food prices continued to rise in June 2021 but at a slightly slower speed than it did in May 2021.)
“This rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, Yam and other Tubers, Milk, Cheese and Eggs, Fish, Soft drinks, Vegetables, Oils and fats and Meat.
On a month-on-month basis, the food sub-index increased by 1.11 per cent in June 2021, up by 0.06 per cent points from 1.05 percent recorded in May 2021.
“The average annual rate of change of the Food sub-index for the twelve-month period ending June 2021 over the previous twelve-month average was 19.72 per cent, 0.54 per cent points from the average annual rate of change recorded in May 2021 (19.18 per cent).
The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 13.09 per cent in June 2021, down by 0.06 per cent when compared with 13.15 per cent recorded in May 2021.
On a month-on-month basis, the core sub-index increased by 0.81 per cent in June 2021. This was down by 0.43 per cent when compared with 1.24 per cent recorded in May 2021.
The highest increases were recorded in prices of Garments, Passenger travel by air and by road, Motor cars and Vehicle spare parts, Shoes and other footwear, Pharmaceutical products, Medical services, Hairdressing salons and personal grooming establishments, Cleaning, repair and hire of clothing.
Others are Clothing materials, other articles of clothing and clothing accessories, Furniture and furnishing and Fuels and lubricants for personal transport equipment.
The average 12-month annual rate of change of the index was 11.75 per cent for the twelve-month period ending June 2021; this is 0.25 per cent points higher than 11.50 per cent recorded in May 2021.
In June 2021, all items inflation on year on year basis was highest in Kogi (23.78), Bauchi (20.67%) and Jigawa (19.81%), while Cross River (15.53%), Delta (15.18%) and Abuja (15.15%) recorded the slowest rise in headline Year on Year inflation.
On month on month basis, however, in June 2021 all items inflation was highest in Kano (2.22%), Akwa Ibom (1.98%) and Osun (1.92%), while Bauchi (0.00%) recorded no change in headline month on month with Abuja and Cross River recording price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).
Food Inflation In June 2021, food inflation on a year on year basis was highest in Kogi (30.34%), Enugu (25.18%) and Kwara (24.78%), while Bauchi (18.97%), River (18.92%) and Abuja (17.09%) recorded the slowest rise in year on year inflation.
On month on month basis, however, June 2021 food inflation was highest in Jigawa (2.67%), Edo (2.43) and Cross River (2.16%), while Lagos (0.14%), Borno (0.06%) and Kwara (0.02% recorded the slowest rise in food inflation.
Nigeria’s Inflation Worries Ease 18 Basis Points to 17.75%
