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Nigeria’s inflation rises for tenth consecutive month to 12.40 per cent

17 Jun 2020, 11:55 am
Financial Nigeria
Nigeria’s inflation rises for tenth consecutive month to 12.40 per cent

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Data from the NBS shows the CPI, which measures inflation, has risen by 138 pbs since August 2019.

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Nigeria’s Consumer Price Index (CPI) rose for the tenth successive month to 12.40 per cent year-on-year in May 2020, according to the monthly inflation report released today by the National Bureau of Statistics (NBS). This represents an increase of 6 basis points (bps) (or 0.06 percentage point) compared to 12.34 per cent reported in April 2020.

On month-on-month basis, the headline inflation increased by 1.17 per cent in May, or 0.15 percentage point higher than the rate recorded in the previous month. Data from the NBS shows the CPI, which measures inflation, has risen by 138 pbs since August 2019.

According to the NBS, there were increases in all major indices. All the Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the latest headline index recorded increases. The NBS said a new sub index – imported food index – is now available in the revised CPI.

As the country began gradual easing of the lockdown put in place by the federal and state governments to contain the spread of the Covid-19 pandemic, food inflation rose by 1 bps to 15.04 per cent in May, compared to 15.03 per cent reported in April. The NBS said the rise in the food inflation was caused by increases in prices of bread and cereals; potatoes, yam and other tubers; oils and fats; fruits; fish and meat. Based on state profiles, food inflation was highest in Abuja (18.13 per cent), Osun (17.40 per cent) and Imo (17.13 per cent), while Abia (13.46 per cent), Bauchi (12.97 per cent) and Kaduna (12.97 per cent) recorded the slowest rise.

Core inflation, which excludes the prices of volatile agricultural produce, stood at 10.12 per cent in May, rising by 0.14 percentage point when compared to the preceding review period. The statistics agency said the highest increases were recorded in prices of pharmaceutical products, medical services, repair of furniture, hospital services, passenger transport by road, motor car, bicycles, as well as maintenance and repair of personal transport equipment.

Price increases were also recorded in passenger transport by sea and inland waterways, paramedical services, motorcycles and hairdressing salons and personal grooming establishment.

Also, in the review period, urban inflation rate stood at 13.03 per cent, rising by 2 bps from 13.01 per cent recorded in April, while the rural inflation rate rose by 10 bps from 11.73 per cent in April to 11.83 per cent last month.

Reacting to the latest inflation figure, CardinalStone Partners, an investment advisory firm, said the inflation report for May was largely in line with its expectation of 12.39 per cent.


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