Nigeria’s Inflation Rate drops to 11.22% in June 2019

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The consumer price index, (CPI) which measures inflation increased by 11.22 percent (year-on-year) in June 2019. This is 0.18 percent points lower than the rate recorded in May 2019 (11.40) percent. 

Increases were recorded in all COICOP divisions that yielded the Headline index.

On a month-on-month basis, the Headline index increased by 1.07 percent in June 2019, this is 0.04 percent rate lower than the rate recorded in May 2019 (1.11) percent.

The percentage change in the average composite CPI for the twelve months period ending June 2019 over the average of the CPI for the previous twelve months period was 11.29 percent, similar to the 11.29 percent recorded in May 2019.

The urban inflation rate increased by 11.61percent (year-on-year) in June 2019 from 11.76 percent recorded in May 2019, while the rural inflation rate increased by 10.87 percent in June 2019 from 11.08 percent in May 2019.

On a month-on-month basis, the urban index rose by 1.10 percent in June 2019, up by 0.05 from 1.15 percent recorded in May 2019, while the rural index also rose by 1.05 percent in June 2019, up by 0.02 from the rate recorded in May 2019 (1.07) percent.

The corresponding twelve-month year-on-year average percentage change for the urban index was 11.65 percent in June 2019. This is less than 11.66 percent reported in May 2019, while the corresponding rural inflation rate in June 2019 was 10.99 percent compared to 10.98 percent recorded in May 2019.

Food Index

The composite food index stood at 13.56 percent in June 2019 compared to 13.79 percent in May 2019.

This rise in the food index was caused by increases in prices of Bread and cereals, Meat, Oils and fats, Potatoes, yam and other tubers, Fish, Vegetables and fruits.

On a month-on-month basis, the food sub-index increased by 1.36 percent in June 2019, down by 0.05 percent points from 1.41 percent recorded in May 2019.

The average annual rate of change of the Food sub-index for the twelve-month period ending June 2019 over the previous twelve-month average was 13.42 percent, 0.05  percent points higher from the average annual rate of change recorded in May 2019 (13.37) percent.

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All Items Less Farm Produce

The ‘’All items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 8.8 percent in June 2019, down by 0.2 percent when compared with 9.0 percent recorded in May 2019.

On a month-on-month basis, the core sub-index increased by 0.85 percent in June 2019. This was up by 0.10 percent when compared with 0.75 percent recorded in May 2019.

The highest increases were recorded in prices of Medical and hospital services, Cleaning, repair and hire of clothing, Repair and hire of footwear, Repair of household appliances, Actual and imputed rentals for housing, Major household appliances whether electronic or not and Tobacco.

The average 12-month annual rate of change of the index was 9.64 percent for the twelve-month period ending June 2019; this is 0.13 percent points lower than 9.77 percent recorded in May 2019.

State Profiles

In analysing price movements under this section, note that the CPI is weighted by consumption expenditure patterns which differ across states. Accordingly, the weight assigned to a particular food or non-food item may differ from state to state making interstate comparisons of consumption basket inadvisable and potentially misleading.

All Items Inflation

In June 2019, all items inflation on year on year basis was highest in Bauchi (15.40%), Kebbi (14.73%) and Kaduna (13.91%), while Delta (9.46%),  Kwara (9.01%) and Bayelsa (8.56%) recorded the slowest rise in headline Year on Year inflation.

On month on month basis, however, June 2019 all items inflation was highest in River (2.28%), Lagos (1.72%) and Cross River (1.57%), while Bayelsa (0.42%), Kaduna (0.37%) and Sokoto (0.31%) recorded the slowest rise.

Food Inflation

In June 2019, food inflation on a year on year basis was highest in Kaduna (17.50%), Kebbi (16.96%) and Ondo (16.44%), while Abia (10.84%), Bayelsa (9.97%) and Kogi (9.81%) recorded the slowest rise.

On month on month basis, however, June 2019 food inflation was highest in Kogi (3.20%), River (2.96%) and Osun (2.58%), while Anambra (0.47%) , Yobe (0.33%) and Kaduna (0.26%) recorded the slowest rise.