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Inflation reduces by 0.18% in June – NBS

The National Bureau of Statistics (NBS) says the inflation rate reduced by 0.18 percent to 17.75 percent in June from the 17.93 percent recorded in May.

The NBS stated this in its “Consumer Price Index (CPI), June 2021” report released on Friday in Abuja.

It said CPI, which measures inflation, increased by 17.75 percent (year-on-year) in June, adding that prices continued to rise in June, but at a slightly slower rate than May.

“Increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the headline index.

“On a month-on-month basis, the headline index increased by 1.06 percent in June.

“This is 0.05 percent higher than the rate recorded in May (1.01 percent),” said the bureau.

It added that the percentage change in the average composite CPI for the 12 months period ending June over the average of the CPI for the previous 12 months period was 15.93 percent.

This, it said, represented a 0.43 percent point increase over 15.50 percent recorded in May.

According to the report, the urban inflation rate increased by 18.35 percent (year-on-year) in June from 18.51 percent recorded in May, while the rural inflation rate increased by 17.16 percent in June from 17.36 percent in May.

It said on a month-on-month basis, the urban index rose by 1.09 percent in June, up by 0.05 points compared to the rate recorded in May.

However, the rural index rose by 1.02 percent in June, up by 0.04 percentage points over the rate recorded in May (0.98) percent.

“The corresponding 12-month year-on-year average percentage change for the urban index was 16.51 percent in June.

“This is higher than 16.09 percent reported in May, while the corresponding rural inflation rate in June was 15.36 percent compared to 14.94 percent recorded in May,” NBS stated.

It said composite food index rose by 21.83 percent in June compared to 22.28 per cent in May.

Accordingly, it implied that food prices continued to rise in June, but at a slightly slower speed than May.

It added that the rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam, and other tubers, milk, cheese and eggs, fish, soft drinks, vegetables, oils and fats, and meat.

However, on a month-on-month basis, the food sub-index increased by 1.11 percent in June, up by 0.06 percent points from 1.05 per cent recorded in May.

The bureau said, “All items less farm produce” or core inflation, which excluded the prices of volatile agricultural produce stood at 13.09 per cent in June, down by 0.06 per cent compared with 13.15 per cent recorded in May.

“On a month-on-month basis, the core sub-index increased by 0.81 percent in June.

“This was down by 0.43 per cent when compared with 1.24 per cent recorded in May.

“The highest increases were recorded in prices of garments, passenger travel by air and by road, motor cars and vehicle spare parts, shoes and other footwear, pharmaceutical products, medical services, hairdressing salons, and personal grooming establishments.

“Others are cleaning, repair and hire of clothing, clothing materials, other articles of clothing and clothing accessories, furniture and furnishing and fuels and lubricants for personal transport equipment.”

For state profile, the NBS said in June, all items inflation on a year-on-year basis was highest in Kogi (23.78 percent), Bauchi (20.67 percent), and Jigawa (19.81 percent).

Meanwhile, Cross River (15.53 percent), Delta (15.18 percent), and Abuja (15.15 percent) recorded the slowest rise in headline year-on-year inflation.

On a month-on-month basis, however, all items inflation in June was highest in Kano (2.22 per cent), Akwa Ibom (1.98 percent), and Osun (1.92 per cent), while Bauchi recorded no change in headline month-on-month.

However, Abuja and Cross River recorded price deflation or negative inflation, a general decrease in the general price level of food, or a negative food inflation rate.

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For food inflation, on a year-on-year basis, it was highest in Kogi (30.34 percent), Enugu (25.18 percent), and Kwara (24.78 per cent), while Bauchi recorded (18.97 per cent).

The report said River (18.92 per cent) and Abuja (17.09 percent) recorded the slowest rise in year-on-year inflation.

On a month-on-month basis, however, food inflation was highest in Jigawa (2.67 percent), Edo (2.43 percent), and Cross River (2.16 percent), while Lagos (0.14 percent), Borno (0.06 percent), and Kwara (0.02 percent) recorded the slowest rise in food inflation.

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

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