Inflation Drops By 0.37% As Food Prices Continues To Rise

Nigeria’s annual inflation rate dropped to 11.23% for its seventeenth consecutive decline, but food prices continue to rise.

The National Bureau of Statistics (NBS) disclosed this in its Consumer Price Index report titled ‘CPI and Inflation Report June 2018’, released on Monday, in Abuja.

The latest figure is 0.37% points less than the rate recorded in May 2018 (11.61%) and lowest in almost three years.

The NBS Data showed that month-on-month inflation rose from 1.09% points in May to 1.24% points in June.

However, year-on-year inflation slowed from 11.61 percentage points in May to 11.23 percentage points in June.

The report further showed that food prices increased to 12.98% in June from a year earlier and a seventh straight month of deceleration.

The Statistical office said the rise in the food index was caused by increases in prices of Potatoes, yam and other tubers, Bread and cereals, Fish, oils and fats, Milk, Cheese and Eggs, Vegetables, Fruits and Meat.

On a month-on-month basis, the food sub-index increased by 1.57% in June 2018, up by 0.2% points, from 1.33% recorded in May 2018. The average annual rate of change of the Food sub-index for the twelve-month period ending June 2018 was 17.75%, down 0.61% points from the average annual rate of change recorded in May 2018 (18.36%).

“Headline inflation falls 17th consecutive time (11.23% year on year in June 2018 compared to 11.61% in May 2018); food inflation (12.98% from13.45%); Core (10.4% from 10.7%). headline month-on-month inflation, however, rose 1.24% in June from 1.09% in May,” the report read.

“Highest Headline year-on-year inflation in Rivers (13.82%) and lowest in Kwara (8.16%). Highest Headline month-on-month inflation in Kogi (2.99%), lowest in Plateau (0.19%).”