Since inflation measures the rate of increase in prices, it is incorrect to think that a lower rate of inflation means that commodity prices are declining. Consumer price inflation in Nigeria unexpectedly eased to 18.12% in April from 1.8.17% in March.
Like many other countries in SSA (Kenya, Uganda, Ghana and Zambia), the decline was driven by the drop in food prices. The food subindex moderated to 22.72% from 22.95% in March.
A further breakdown of the report revealed that inflation declined sharply on a monthly basis by 0.59% to 0.97% (12.3% annualized) in April.
More noteworthy is the rise in core inflation (inflation fewer seasonalities) to 12.74% from 12.67% in March as healthcare and transport costs climbed.
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