Nigeria’s inflation rate drops to 11.22%, lowest in 11 months
The Consumer Price Index (CPI), which measures inflation, declined to 11.22 per cent year-on-year in June compared to 11.40 per cen in May, according to the National Bureau of Statistics (NBS).
The latest inflation data shows that Nigeria’s inflation dropped to almost a year low in June. Basically, Nigeria’s inflation has been fluctuating in recent months. In December 2018, inflation hits a high of 11.44%
Food inflation also reduced to 13.56 per cent in June compared to 13.79 per cent in the preceding month.
According to the CPI figures for June, which was released Monday by the NBS, core inflation, which excludes the prices of volatile agricultural produce dropped to 8.8 per cent in June, down by 0.2 per cent compared with 9.0 per cent recorded in May.
A deceleration in the headline index could encourage the monetary authority to cut the monetary policy rate, thereby lowering the cost of borrowing in the economy.
The Bureau noted that the 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.
The average annual rate of change of the Food sub-index over the previous twelve-month average was 13.42%, which was 0.05% points higher from the average annual rate of change recorded in May 2019.
NBS revealed that the highest price increases were recorded in items such as Medical and hospital services, Cleaning, repair and hire of clothing, Repair and hire of footwear and Repair of household appliances.
Other items listed by the Bureau include Actual and imputed rentals for housing, Major household appliances whether electronic or not and tobacco.
Rural and Urban Inflation: In June, urban inflation dropped to 11.61% from 11.76% on a year-on-year basis, while the rural inflation rate increased by 10.87% in June 2019.
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