June 13, 2018
By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Nigeria’s inflation rate decelerated for the 16th consecutive month in May 2018 to 11.61 percent (year-on-year), according to the National Bureau of Statistics (NBS) latest report.
NBS says this is 0.87 percent points less than the rate recorded in April 2018 (13.34) percent and represents the sixteenth consecutive disinflation since January 2017.
According to the report, increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) 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 nation’s statistics office said.
According to the report, the percentage change in the average composite Consumer Price Index (CPI) for the twelve 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 NBS reports 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 report added.
According to the NBS, 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 report affirmed that 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.
Also, 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.
While 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.