By Adedapo Adesanya
Inflation rate in Nigeria hit a 26-month high of 12.56 per cent (year-on-year) in June 2020, the National Bureau of Statistics (NBS) disclosed on Friday.
The latest figure, contained in the Consumer Price Index (CPI) report for June 2020, was 0.16 per cent higher than the 12.4 per cent recorded in the month of May 2020.
The report noted an increase in all Classification of Individual Consumption According to Purpose (COICOP) divisions that yielded the headline index. The COICOP measures all index taken into consideration.
On a month-on-month basis, the headline index increased by 1.2 per cent in June 2020. This is 0.04 per cent rate higher than the rate recorded in May 2020 (1.1 per cent).
The percentage change in the average composite CPI for the 12 months period ending June 2020, over the average of the CPI for the previous 12 months period was 11.9 per cent, representing a 0.1 per cent point increase from 11.8 per cent recorded in May 2020.
The report also showed that the composite food index rose to 15.2 per cent compared to 15.0 per cent recorded in May 2020
This rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, fruits, oils and fats, meat, fish and vegetables.
On a month-on-month basis, the food sub-index increased by 1.5 per cent in June 2020, up by 0.06 per cent points from 1.4 per cent recorded in May 2020.
The “All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 10.13 per cent in June 2020, up by 0.01 per cent when compared with 10.12 per cent recorded in May 2020.
On a month-on-month basis, the core sub-index increased by 0.9 per cent in June 2020. This was down by 0.02 per cent when compared with 0.8 per cent recorded in May 2020.
The average annual rate of change of the food sub-index for the 12-month period ending June 2020 over the previous 12-month average was 14.5 per cent, representing a 0.13 per cent points increase from the average annual rate of change recorded in May 2020 (14.3 per cent).
The urban inflation rate increased by 13.2 per cent (year-on-year) in June 2020 from 13.0 per cent recorded in May 2020, while the rural inflation rate increased by 11.9 per cent in June 2020 from 11.8 per cent in May 2020.
