Food prices in Nigeria continued skyrocketing in June as inflation rate dropped to 11.23%

Food prices continued to rise in June 2018 despite Nigeria’s annual inflation rate dropping to 11.23% for its seventeenth consecutive decline and lowest in almost three years.

This is 0.37% points less than the rate recorded in May 2018 (11.61%) and represents the seventeenth consecutive disinflation since January 2017.

The National Bureau of Statistics (NBS) disclosed this in its CPI report titled ‘CPI and Inflation Report June 2018’, released on Monday, July 23, 2018, in Abuja, Nigeria's capital city.

The CPI measures the average change over time in prices of goods and services consumed by people for the day-to-day living.

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According to the report, despite the continued annual disinflation, food prices increased 12.98% in June from a year earlier and a seventh straight month of deceleration.

The NBS Data showed that month-on-month inflation rose from 1.09% points in May to 1.24% points in June.

“Headline inflation falls 17th consecutive time (11.23% year on year in June 2018 compared to 11.61% in May 2018); food inflation(12.98% from 13.45%); Core (10.4% from 10.7%). Headline month-on-month inflation, however, rose 1.24% in June from 1.09% in May,” the report read.

Food index

The NBS noted that the composite food index rose by 12.98% in June 2018 (13.45% in May 2018).

The Statistical office said the rise in the food index was caused by increases in prices of Potatoes, yam and other tubers, Bread and cereals, Fish, oils and fats, Milk, Cheese and Eggs, Vegetables, Fruits and Meat.

On a month-on-month basis, the food sub-index increased by 1.57% in June 2018, up by 0.2% points, from 1.33% recorded in May 2018. The average annual rate of change of the Food sub-index for the twelve-month period ending June 2018 was 17.75%, down 0.61% points from the average annual rate of change recorded in May 2018 (18.36%).

The inflation report is coming when Nigeria's central bank monetary policy committee is meeting to decide key economic issues and the lending rate.

The key lending rate has been held constant at 14% since July 2016 to support troubled naira and curb inflation.

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