Nigeria’s Inflation Drops to 16.10% in June 2017

By Modupe Gbadeyanka

Data released on Monday, July 17, 2017, by the National Bureau of Statistics (NBS) has revealed that the Consumer Price Index (CPI), which measures inflation, increased by 16.10 percent (year-on-year) in the month of June 2017.

This was 0.15 percent points lower than the rate recorded in May, which stood at 16.25 percent.

It is the fifth consecutive decline in the rate of inflation since January 2017.

According to the stat office, on a month-on-month basis, the headline index increased by 1.58 percent in June 2017, 0.30 percent points lower than the rate of 1.88 percent recorded in May 2017.

It noted that month on month inflation has cumulatively risen by 9.28% since January 2017

NBS pointed out that the percentage change in the average composite CPI for the twelve-month period ending in May2017 over the average of the CPI for the previous twelve-month period was 17.58 percent, lower from 17.63 percent recorded in May 2017.

During the period under review, the Food Index increased by 19.91 percent (year-on-year) in June 2017, down by 0.64 percent points from the rate recorded in May; 19.27 percent, indicating continued pressure in food prices.

It said 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 percent points from rate recorded in May (13.00) percent.

This, it explains, 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.