Inflation Rate Drops To11.02%

Inflation dropped to 11.22 per cent last month, compared to 11.40 per cent in May, the National Bureau of Statistics (NBS) announced yesterday.

A separate food price index showed inflation at 13.56 per cent in June, compared to 13.79 per cent the previous month.

The NBS report put the Consumer Price Index (CPI) which measured inflation for June at 0.18 per cent points lower than the rate recorded in May (11.40) per cent.

On month-on-month basis, the headline index increased by 1.07 per cent in June, amounting to 0.04 per cent rate lower than the rate recorded in May (1.11) per cent.

According to the report, the percentage change in the average composite CPI for the 12 months period ending June 2019 over the average of the CPI for the previous 12 months period was 11.29 per cent, similar to the 11.29 per cent recorded in May.

The urban inflation rate increased by 11.61 per cent (year-on-year) in June 2019 from 11.76 per cent recorded in May 2019, while the rural inflation rate increased by 10.87 per cent in June 2019 from 11.08 per cent in May 2019.

On a month-on-month basis, the urban index rose by 1.10 per cent in June 2019, up by 0.05 from 1.15 per cent recorded in May 2019, while the rural index also rose by 1.05 per cent in June 2019, up by 0.02 from the rate recorded in May 2019 (1.07) per cent.

The composite food index stood at 13.56 per cent in June 2019 compared to 13.79 per cent in May 2019. This rise in the food index was caused by increases in prices of bread and cereals, meat, oils and fats, potatoes, yam and other tubers, fish, vegetables and fruits.

On month-on-month basis, the food sub-index increased by 1.36 per cent in June 2019, down by 0.05 per cent points from 1.41 per cent recorded in May 2019.

The average annual rate of change of the food sub-index for the 12-month period ending June 2019 over the previous 12-month average was 13.42 per cent, 0.05 per cent points higher from the average annual rate of change recorded in May 2019 (13.37) per cent.

The “All items less farm produce” or core inflation, which excludes the prices of volatile agricultural produce stood at 8.8 per cent in June, down by 0.2 per cent when compared with nine per cent recorded in the previous month.

The core sub-index increased by 0.85 per cent in June 2019. This was up by 0.10 per cent when compared with 0.75 per cent recorded in May.

The average 12-month annual rate of change of the index was 9.64 per cent for the twelve-month period ending June 2019; this is 0.13 per cent points lower than 9.77 per cent recorded in the previous month.

Last month, all items inflation on year on year basis was highest in Bauchi (15.40 per cent), Kebbi (14.73 per cent) and Kaduna(13.91 per cent), while Delta (9.46 per cent), Kwara (9.01 per cent ) and Bayelsa (8.56 per cent) recorded the slowest rise in headline Year on Year inflation.

On month on month basis however, June 2019 all items inflation was highest in River (2.28 per cent), Lagos (1.72 per cent) and Cross River (1.57 per cent), while Bayelsa (0.42 per cent), Kaduna (0.37 per cent) and sokoto (0.31 per cent) recorded the slowest rise.

In June, food inflation on a year on year basis was highest in Kaduna (17.50 per cent), Kebbi (16.96 per cent) and Ondo (16.44 per cent), while Abia (10.84 per cent), Bayelsa (9.97 per cent) and Kogi (9.81 per cent) recorded the slowest rise.

However, last month’s food inflation was highest in Kogi (3.20 per cent), Rivers (2.96 per cent) and Osun (2.58 per cent), while Anambra (0.47 per cent), Yobe (0.33 per cent) and Kaduna (0.26 per cent) recorded the slowest rise.

The Nation