Inflation Drops to 11.23% in June Amid Rise in Food Index

By Modupe Gbadeyanka

Data released on Monday by Nigeria’s National Bureau of Statistics (NBS) showed that the headline inflation for the month of June 2018 moderated further as expected.

The stats office said the Consumer Price Index (CPI), which measures inflation, increased by 11.23 percent (year-on-year) in June 2018.

It stated that this was 0.37 percent points less than the rate recorded in May 2018, 11.61 percent, representing the 17th consecutive disinflation since January 2017.

The NBS explained that increases were recorded in all COICOP divisions that yielded the Headline index.

Also, on a month-on-month basis, the headline index increased by 1.24 percent in June 2018, up by 0.15 percent points from the rate recorded in May 2018.

The percentage change in the average composite CPI for the 12-month period ending June 2018 over the average of the CPI for the previous 12 months period was 14.37 percent, showing 0.42 percent point lower from 14.79 percent recorded in May 2018.

It was revealed that the urban inflation rate eased by 11.68 percent (year-on-year) in June 2018 from 12.08 percent recorded in May 2018, while the rural inflation rate also eased 10.83 percent in June 2018 from 11.20 percent in May 2018.

On month-on-month basis, the urban index rose by 1.24 percent in June 2018, up by 0.14 from 1.10 percent recorded in May 2018, while the rural index also rose by 1.23 percent in June 2018, up by 0.15 percent from the rate recorded in May 2018(1.08) percent.

The corresponding 12-month year-on-year average percentage change for the urban index was 14.71 percent in June 2018. This is less than the 15.10 percent reported in May 2018, while the corresponding rural inflation rate in June 2018 was 14.08 percent compared to 14.53 percent recorded in May 2018.

Business Post reports that the composite food index rose by 12.98 percent in June 2018 versus 3.45 percent recorded in May 2018. This rise in the food index was caused by increases in prices of potatoes, yam and other tubers, bread and cereals, fish, oils and fats, milk, cheese and eggs, vegetables, fruits and meat.

On a month-on-month basis, the food sub-index increased by 1.57 percent in June 2018, up by 0.24 percent points, from 1.33 percent recorded in May 2018.

The average annual rate of change of the Food sub-index for the 12-month period ending June 2018 was 17.75 percent, down 0.61 percent points from the average annual rate of change recorded in May 2018, which was at 18.36 percent.