Nigeria’s Inflation Rate Drops To 17.93%, But Food Prices Rise

Must Read

- Advertisement -

Nigeria’s headline inflation rate dropped for the second consecutive month in May, however, the prices of food have continued to skyrocket.

Latest data published by the National Bureau of Statistics (NBS) on Tuesday revealed that the Consumer Price Index (CPI), which measures inflation, increased by 17.93 per cent (year-on-year) in the fifth month of the year 2021. This is 0.19 percent points lower than the rate recorded in April 2021 (18.12 percent).

On a month-on-month basis, the Headline index increased by 1.01 percent in May 2021. This is 0.04 percentage points higher than the rate recorded in April 2021 (0.97 percent).

Nigeria’s Inflation Rate
Photo by Eva Blue

The percentage change in the average composite CPI for the twelve months period ending May 2021 over the average of the CPI for the previous twelve months period was 15.50 percent, showing a 0.46 percent point rise from 15.04 percent recorded in April 2021.

Food prices on the rise

- Advertisement -

According to the data, the composite food index rose by 22.28 percent in May 2021 compared to 22.72 percent in April 2021.

This rise in the food index was caused by increases in prices of Bread, Cereals, Milk, Cheese, Eggs, Fish, Soft drinks, Coffee, Tea and Cocoa, Fruits, Meat, Oils and fats and Vegetables.

On a month-on-month basis, the food sub-index increased by 1.05 percent in May 2021, up by 0.06 percent points from 0.99 percent recorded in April 2021.

The average annual rate of change of the Food sub-index for the twelve-month period ending May 2021 over the previous twelve-month average was 19.18  percent, 0.60  percent points from the average annual rate of change recorded in April 2021 (18.58) percent.

- Advertisement -

In May 2021, the food inflation rate on a year on year basis was highest in Kogi (32.82%), Kwara (26.02%) and Enugu (25.43%), while Akwa Ibom (20.06%), Bauchi (18.65%) and Abuja (16.91%) recorded the slowest rise in year on year inflation.

Read Also:  2017 IN REVIEW: BRANDS’ BULLS EYE MOVES AND THE OFF TARGETS IN THE FMCG SECTOR

On a month-on-month basis, however, May 2021 food inflation was highest in Kogi (3.11%), Ogun (2.89%) and Anambra (2.37%), while Edo, Sokoto and Ekiti recorded price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).

inflation rate Food trade FOOD FORTIFICATION World food prices rise for 7th month in a row in December

In May 2021, all items inflation on year on year basis was highest in Kogi (25.13%), Bauchi (23.02%) and Sokoto (20.11%), while Katsina (15.69%), Imo (15.52%) and Delta (14.85%) recorded the slowest rise in headline Year on Year inflation.

- Advertisement -

On a month-on-month basis, however, in May 2021 all items inflation was highest in Kogi (2.22%), Ogun (2.17%) and Cross River (2.07%), while Ekiti (0.02%) recorded the slowest rise in headline month on month with River and Sokoto recording price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).

Read Also:  October 2017 inflation: Data Reaction & November Outlook

The “All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 13.15 percent in May 2021, up by 0.41 percent when compared with 12.74 percent recorded in April 2021.

On a month-on-month basis, the core sub-index increased by 1.24 percent in May 2021. This was up by 0.25 percent when compared with 0.99 percent recorded in April 2021.

inflation rate Dividend Nigeria Economy Slides into Recession; Albeit, Q3 2020 Real GDP Contraction Rate Eases to 3.62%…
Afolabi Sotunde Illustration Naira

The highest increases were recorded in prices of Pharmaceutical products, Garments, Shoes and other footwear, Hairdressing salons and personal grooming establishments, Furniture and furnishing, Carpet and other floor covering, Motor cars, Hospital services, Fuels and lubricants for personal transport equipment, Cleaning, repair and hire of clothing, Other services in respect of personal transport equipment, Gas, Household textile and Non-durable household goods.

The average 12-month annual rate of change of the index was 11.50 percent for the twelve-month period ending May 2021; this is 0.25 percent points higher than the 11.25 percent recorded in April 2021.

- Advertisement -
spot_imgspot_img

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

Visa Currencycloud

Visa to Acquire London fintech Currencycloud for £700M

07/22/2021 - Visa today announced it has signed a definitive agreement to acquire Currencycloud, a global platform that enables banks and fintech to provide...
- Advertisement -
spot_imgspot_img

Latest News

Visa to Acquire London fintech Currencycloud for £700M

07/22/2021 - Visa today announced it has signed a definitive agreement to acquire Currencycloud, a global platform that enables...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -spot_imgspot_img