Data released on Thursday, June 15, by the National Bureau of Statistics, NBS, has shown that Nigeria’s Consumer Price Index (CPI) which measures inflation depreciated by 0.99 percent to 16.25 percent (year-on-year) in May 2017 from 17.24 percent in April.
This represents the fourth consecutive decline in the rate of inflation since January 2017. The report showed that on a month-on-month basis, the Headline index increased by 1.88 percent in May 2017, 0.28 percent points higher than the rate of 1.60 percent recorded in April 2017 indicating the existence of persistence pressure on prices despite the general decline in year on year inflation.
Month on Mont inflation has cumulatively risen by 7.7% since January 2017. The percentage change in the average composite CPI for the twelvemonth period ending in May2017 over the average of the CPI for the previous twelve-month period was 17.63 percent, higher from 17.59 percent recorded in April 2017.
The Food Index increased by 19.27percent (year-on-year) in May 2017, down by 0.03 percent points from the rate recorded in April (19.30 percent) indicating continued pressure in food prices.
Price movements recorded by All Items less farm produce or Core sub-index rose by 13.00 percent (year-on-year) in May, down by 1.80 percent points from rate recorded in April (14.80) percent. This represents the 7th straight month of decline in the core index since November 2016
The Urban index rose by 16.34 percent (year-on-year) in May 2017 from 17.62 percent recorded in April, while the Rural index increased by 16.02 percent in May from 16.69 percent in April.
On month-on-month basis, the urban index rose by 1.84 percent in May from 1.61 percent recorded in April, while the rural index rose by 1.92 percent in May from 1.59 percent in April.
The corresponding twelve-month year-on-year average percentage change for the urban index increased from 18.98 percent in April to 18.88 percent in May, while the corresponding rural index also increased from 16.37 percent in April to 16.50percent in May.
The Composite Food Index rose by 19.27 percent in May2017. The rise in the index was caused by increases in prices of meat, bread and cereals, fish, potatoes, milk cheese and eggs as well as vegetables such as tomatoes.
On a month-on-month basis, the Food sub-index increased by 2.54 percent in May, up by 0.50 percent points from 2.04percent recorded in April. This represents the highest month on month change in food prices since May 2016 and cumulatively represents a rise in the food index of 10.1 percent since January 2017.
The Food index in May whether on a year on year basis on month on month basis therefore indicates sustained pressure on food prices since then beginning of the year following high food prices recorded the whole of 2016.
The average annual rate of change of the Food sub-index for the twelve-month period ending in May2017 over the previous twelve-month average was 17.48 percent, 0.37 percent points from the average annual rate of change recorded in April (17.11) percent.
