Nigeria’s inflation rate declines for fourth consecutive month to 16.27%

shakirudeen taiwo

June 16, 2017 5:17 PM

Volatility in general price level in Nigeria has eased further by 0.9% in the month of May 2017 to 16.25% from 17.24% recorded April 2017.

Petty traders in a local market in Nigeria

According to the statistics released on Thursday, June 15, 2017, by the National Bureau of Statistics (NBS) in Abuja showed a further decline for the fourth consecutive month in a roll since February 2017.

The report noted that there is a month-on-month increase in the headline inflation by 1.88% which is higher than April 2017 figure by 0.88%. This indicates that pressure on prices of basic utilities still persistence in the country.

NBS also stated that the Food Index increased by 19.30% (year-on-year) in May 2017, up by 0.03% from the rate recorded in April as a result of an increase in prices of meat, bread and cereals, fish, potatoes, milk cheese and eggs, as well as vegetables such as tomatoes.

“The food index in May whether on a year-on-year basis or month-on-month basis, therefore, indicates sustained pressure on food prices since the beginning of the year following high food prices recorded the whole of 2016,” the NBS said.

The Core inflation, which excludes the price of agricultural produce, also eased by 1.30% to 13% in May 2017 as against 14.80% recorded in April 2017.

The Bureau noted that the major increases in components of core inflation were recorded in the prices of solid and liquid fuels, motor cars, wine, shoes, air transport and other basic needs of the people.

The report also noted an increase in rural inflation by 0.13% to 16.37% while the Urban inflation rate decreased to 18.88% from 18.98% recorded in April 2017.

In response to the figure, the Central Bank of Nigeria (CBN) has issued a special N200 bn Treasury Bills in the Open Market Operation to mop-up some liquidity in the market.

It would be recalled that the apex bank set a target of 11% inflation rate as its goals, but various economic indicators performance and trends reflect this goal might be a mirage considering the present economic situation in the country.

shakirudeen taiwo

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng