14 June 2018

Nigeria: Inflation Drops to 26-Month Low At 11.6 Percent

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In line with analysts projection, Consumer Price Index (CPI) which measures inflation increased by 11.61 percent (year-on-year) in May 2018, showing a further slowdown in the rate at which prices of goods and services rise in the country.

This is its lowest level since February 2016 when it was 11.4 per cent.

The May inflation rate is 0.87 percent points less than the 13.34 per cent rate recorded in April and represents the 16th consecutive disinflation since January 2017.

Data released by the National Bureau of Statistics (NBS) showed that the increases were recorded in all divisions that yield the Headline Index.

On a month-on-month basis, the headline index increased by 1.09 percent in May 2018, up by 0.26 percent points from the rate recorded in April 2018.

The percentage change in the average composite CPI for the 12 months period ending May 2018 over the average the average of the CPI for the previous twelve months period was 14.79 percent, showing 0.41 percent point lower from 15.20 percent recorded in April 2018.

The urban inflation rate eased by 12.08 percent (year-on-year) in May 2018 from 12.89 percent recorded in April, while the rural inflation rate also eased 11.20 percent in May from 12.13 percent in April.

On month-on-month basis, the urban index rose by 1.10 percent in May 2018, up by 0.25from 0.85 percent recorded April, while the rural index also rose by 1.08 percent in May 2018, up by 0.26 percent from the rate recorded in April (0.82) percent.

The corresponding twelve-month year-on-year average percentage change for the urban index is 15.10 percent in May 2018. This is less than 15.47 percent reported in April, while the corresponding rural inflation rate in May 2018 is 14.53 percent compared to 14.95 percent recorded in April.

The composite food index rose by 13.45 percent in May 2018. This rise in the index was caused by increases in prices of Potatoes, yam and other tubers, Vegetables, Fish, Bread and cereals, Fruits and Meat.

On month-on-month basis, the food sub-index increased by 1.33 percent in May 2018, up by 0.42 percent points from 0.91 percent recorded in April.

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 was 18.36 percent, 0.53 percent points from the average annual rate of change recorded in April (18.89) percent.

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Inflation rate (year-on-year) is expected to drop to 11.50 per cent in May 2018, lower than the 12.48 per cent recorded… Read more »

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