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The Consumer Price Index (CPI) for May 2018 released yesterday by the National Bureau of Statistics (NBS) shows that the CPI, which measures inflation, increased by 11.61 percent, year-on-year (YoY).

This represents a 0.87 percentage point decrease, compared with the 12.48 percent recorded in April, making it the sixteenth consecutive disinflation since January 2017.

Increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yield the Headline Index. On a month-on-month basis (MoM), the Headline Index increased by 1.09 percent, up by 0.26 percentage points from the rate recorded in the previous month.

The percentage change in the average composite CPI for the twelve-month period ending May 2018 over the average of the CPI for the previous twelve-month period was 14.79 percent, 0.41 percentage points lower than the 15.20 percent recorded in April 2018.

The urban inflation rate eased to 12.08 percent, YoY, from 12.89 percent recorded in April, while the rural inflation rate also eased to 11.20 percent from 12.13 percent recorded in the previous month.

The urban index rose by 1.10 percent, MoM, by 0.25 percentage points from 0.85 percent reported in April, while the rural index also rose 1.08 percent, by 0.26 percentage points from 0.82 percent reported in the previous month.

The composite food index rose by 13.45 percent, as a result of increases in prices of Potatoes, yam and other tubers, Vegetables, Fish, Bread and cereals, Fruits and Meat.

The food sub-index, MoM, increased by 1.33 percent, up by 0.42 percentage points from 0.91 percent reported in the previous month.

The average annual rate of change of the food sub-index for the twelve-month period ending May 2018 over the previous twelve-month average stood at 18.36 percent, 0.53 percentage points lower than the 18.89 percent average annual rate of change reported in April.

The ‘All items less farm produce’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 10.7 percent, down by 0.2 percentage points from the 10.9 percent recorded in April.

The core sub-index increased by 0.98 percent, MoM. Compared with the 0.87 percent reported in April, it was up by 0.11 percentage points.

The highest increases were recorded in prices of hairdressing saloons and personal grooming establishment, vehicle spare parts, fuels and lubricants for transport equipment, books and stationaries, domestic services and household services, pharmaceutical products, paramedical services, medical services and passenger transport by road.

The average twelve-month annual rate of change of the index was 11.83 percent for the twelve-month period ending May 2018, 0.19 percentage points lower than the 12.02 percent recorded in April.

All items inflation, YoY, was highest in Kebbi State with 14.65 percent, followed by Yobe State with 13.68 percent and Jigawa State with 13.62 percent, while the slowest rise in headline inflation, YoY, was recorded in these states: Kwara, 8.87 percent; Kogi, 9.07 percent; and Delta with 9.22 percent.

However, MoM, all items inflation was highest in Adamawa State with 1.98 percent; Kwara State, 1.79 percent; and Kaduna State with 1.70 percent. With 0.02 percent recorded in Kogi, 0.52 percent in Lagos and Ogun, and Cross River with 0.56 percent, these states had the slowest rise in all items inflation, MoM.