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Nigeria’s inflation rate drops to 17.75% in June – NBS reports

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Inflation

The Consumer Price Index (CPI) which measures inflation rate of change in the increase in prices, according to the National Bureau of Statisticsis (NBS), increased by 17.75 per cent (year-on-year) in June 2021.

The NBS’ CPI report showed 0.18 percentage points were lower than the rate recorded in May 2021 (17.93) per cent.

This implies that prices continued to rise in June 2021 but at a slightly slower rise than it did in May 2021). The corresponding twelve-month year-on-year average percentage change for the urban index was 16.51 per cent in June 2021.

This is higher than 16.09 percent reported in May 2021, while the corresponding rural inflation rate in June 2021 was 15.36 percent compared to 14.94 percent recorded in May 2021.

The report read in part: “The consumer price index which measures inflation (rate of change in the increase in prices) increased by 17.75 per cent (year-on-year) in June 2021.

“This is 0.18 percentage points lower than the rate recorded in May 2021 (17.93) per cent. (This implies that prices continued to rise in June 2021 but at a slightly slower rise than it did in May 2021).”

“On month-on-month basis, the Headline index increased by 1.06 per cent in June 2021. This is 0.05 percentage points higher than the rate recorded in May 2021 (1.01 per cent).

“On a month-on-month basis, the urban index rose by 1.09 percent in June 2021, up by 0.05 points compared to the rate recorded in May 2021 (1.04 percent), while the rural index also rose by 1.02 per cent in June 2021, up by 0.04 percentage points over the rate that was recorded in May 2021 (0.98) per cent.”

The Bureau of Statisticsis also noted that increases were recorded in all COICOP divisions that yielded the Headline index.

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The urban inflation rate increased by 18.35 per cent (year-on-year) in June 2021 from 18.51 per cent recorded in May 2021, while the rural inflation rate increased by 17.16 per cent in June 2021 from 17.36 per cent in May 2021.

Meanwhile, the composite food index rose by 21.83 per cent in June 2021 compared to 22.28 per cent in May 2021.

This implies that food prices continued to rise in June 2021 but at a slightly slower speed than it did in May 2021.

The average annual rate of change of the Food sub-index for the twelve-month period ending June 2021 over the previous twelve-month average was 19.72 per cent, 0.54 per cent points from the average annual rate of change recorded in May 2021 (19.18 per cent).

This rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, Yam and other Tubers, Milk, Cheese and Eggs, Fish, Soft drinks, Vegetables, Oils and fats and Meat.

According to the report, “On month-on-month basis, the food sub-index increased by 1.11 per cent in June 2021, up by 0.06 per cent points from 1.05 per cent recorded.

“The Core inflation, which excludes the prices of volatile agricultural produce stood at 13.09 percent in June 2021, down by 0.06 percent when compared with 13.15 per cent recorded in May 2021.

“The highest increases were recorded in prices of Garments, Passenger travel by air and by road, Motor cars and Vehicle spare parts, Shoes and other footwear, Pharmaceutical products, Medical services, Hairdressing salons, and personal grooming establishments, Cleaning, repair and hire of clothing, Clothing materials, other articles of clothing and clothing accessories, Furniture and furnishing and Fuels and lubricants for personal transport equipment.

“The average 12-month annual rate of change of the index was 11.75 per cent for the twelve-month period ending June 2021; this is 0.25 per cent points higher than 11.50 per cent recorded in May 2021.”

 

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  1. Pingback: Nigeria’s Inflation Rate Drops To 17.75% In June – NBS Reports | Techvalley

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