Nigeria's Inflation Rate Dropped in May

The National Bureau of Statistics (NBS) reported that Nigeria's inflation rate reduced in May by 0.19 percent to 17.93 percent from 18.12 percent recorded in April.

It said this in the “Consumer Price Index (CPI), May 2021” report it released on Tuesday in Abuja, adding that CPI, which measures inflation, increased by 17.93 percent (year-on-year) in May.

“Increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the headline index.

“On a month-on-month basis, the headline index increased by 1.01 percent in May, this is 0.04 percentage points higher than the rate recorded in April 2021 (0.97 percent),” the NBS stated.

The report said the percentage change in the average composite CPI for the 12-month period ending May over the average of the CPI for the previous 12-month period was 15.50 percent.

This, it said, showed a 0.46 percent point rise from 15.04 percent recorded in April.

It also said the urban inflation rate increased by 18.51 percent (year-on-year) in May from 18.68 percent recorded in April.

According to the NBS, the rural inflation rate increased by 17.36 percent in May from 17.57 percent in April.

It said on a month-on-month basis, the urban index rose by 1.04 percent in May, up by 0.05 percent compared to the 0.99 rates recorded in April, while the rural index rose by 0.98 percent in May, up by 0.03 points compared to the 0.03 percent that was recorded in April.

“The corresponding 12-month year-on-year average percentage change for the urban index is 16.09 percent in May.

“This is higher than 15.63 percent reported in April, while the corresponding rural inflation rate in May 2021 is 14.94 percent compared to 14.48 percent recorded in April,” said the report.

The NBS said the composite food index rose by 22.28 percent in May compared to 22.72 percent in April, indicating a 0.44 percent decrease.

It, however, said there were increases in the prices of bread, cereals, milk, cheese, eggs, fish, soft drinks, coffee, tea and cocoa, fruits, meat, oils and fats, and vegetables.

It added that on a month-on-month basis, the food sub-index increased by 1.05 percent in May, up by 0.06 percent from 0.99 percent recorded in April.

The bureau said, “All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 13.15 percent in May, up by 0.41 percent when compared with 12.74 percent recorded in April.

“On a month-on-month basis, the core sub-index increased by 1.24 percent in May.

“This was up by 0.25 percent when compared with 0.99 percent recorded in April.

“The highest increases were recorded in prices of pharmaceutical products, garments, shoes, and other footwear, hairdressing salons, and personal grooming establishments,” said the report.

Others, according to the report, are motor cars, hospital services, fuels and lubricants for personal transport equipment, cleaning, repair, and hire of clothing, furniture and furnishing, carpet, and other floor covering.

Other services in respect of personal transport equipment, gas, household textile, and non-durable household goods, were among those that recorded the highest increases.

For state profiles, the NBS said in May, all items inflation on a year-on-year basis was highest in Kogi (25.13 percent), Bauchi (23.02 percent), and Sokoto (20.11 percent).

Meanwhile, Katsina (15.69 percent), Imo (15.52 percent), and Delta (14.85 percent) recorded the slowest rise in headline Year-on-Year inflation.

On a month-on-month basis, however, all items inflation in May was highest in Kogi (2.22 percent), Ogun (2.17 percent), and Cross River (2.07 percent).

However, Ekiti at 0.02 percent recorded the slowest rise in headline month-on-month with River and Sokoto recording price deflation or negative inflation.

For food inflation on a year-on-year basis, it was highest in Kogi (32.82 percent), Kwara (26.02 percent), and Enugu (25.43 percent), while Akwa Ibom (20.06 percent), Bauchi (18.65 percent), and Abuja (16.91 percent) recorded the slowest rise in year-on-year inflation.

On a month-on-month basis, however, May food inflation was highest in Kogi (3.11 percent), Ogun (2.89 percent), and Anambra(2.37 percent), while Edo, Sokoto, and Ekiti recorded price deflation or negative inflation.

Allnews reports that CPI measures the average change over time in the prices of goods and services consumed by people for day-to-day living.