Inflation Rate Declines Further to 11.61% amid High Food Prices

For the sixteenth month, inflation rate continued a downward trajectory, declining from 12.48 per cent in April to 11.16 per cent in May.

According to the latest inflation figures released by the National Bureau of Statistics (NBS) on Wednesday, the Consumer Price Index (CPI), which measures inflation stood at 11.16 per cent (year-on-year) in Mat 2018, adding that " this is 0.87 per cent points less than the rate recorded in April 2018 (13.34) per cent.. "

However, by this claim, the NBS inadvertently contradicted itself, having put the inflation rate for April  at 12.48 per cent last month, contrary to its latest report alluding to April inflation rate as 13.34 per cent.

But a closer look at the infograph contained in the report reflected the accurate rate for April.
The statistical agency stated  that in the May figures, increases
were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yield the headline index.

COICOP is a classification and analysis of individual consumption expenditures incurred by households, nonprofit  institutions serving households and government according to their purpose.
It includes categories such as clothing and footwear, housing, water, electricith
On a month-on-month basis, the Headline index increased by 1.09 per cent in May 2018, up by 0.26 percentage points over the rate recorded in April 2018.

The percentage change in the average composite CPI for the twelve months period ending May 2018 over the average of the CPI for the previous twelve months period was 14.79 per cent, indicating a 0.41 percentage point decline from 15.20 per cent posted in April 2018.
The composite food index rose by 13.45 per cent in May 2018. 

This rise in the index was caused by increases in prices of potatoes, yam and other tubers, vegetables, fish, bread and cereals, fruits and meat. 

On month-on-month basis, the food sub-index increased by 1.33 per cent in May 2018, up by 0.42 percentage points from 0.91 per cent recorded in April. 

The average annual rate of change of the food sub-index for the twelve-month period ending May 2018
over the previous twelve-month average was 18.36 percent, 0.53 percent points from the average annual
rate of change recorded in April (18.89) per cent.

The ''all items less farm produce'' or Core inflation, which excludes the prices of volatile agricultural produce stood at 10.7 per cent in May 2018, down by 0.2 per cent from the rate recorded in April (10.9) per cent.
On month-on-month basis, the core sub-index increased by 0.98 percent in May 2018.
This was up by 0.11
percent when compared with 0.87 percent recorded in April. 

The highest increases were recorded in prices of hairdressing saloons and personal grooming
establishment, vehicle spare parts, Fuels and lubricants for transport equipment, books and stationery, domestic services and household services, pharmaceutical products, paramedical services, medical
services and passenger transport by road.
The average 12-month annual rate of change of the index was 11.83 per cent for the twelve-month period ending May 2018; this is 0.19 percent points lower than 12.02 percent recorded in April.
Also, all items inflation on year on year basis was highest in Kebbi (14.65%), Yobe (13.68%) Jigawa
(13.62%), while Kwara (8.87%), Kogi (9.07%) and Delta (9.22%) recorded the slowest rise in headline year- on -year inflation. 

Month-on-month basis however, May 2018 all items inflation was highest in Adamawa (1.98%), Kwara (1.79), and Kaduna (1.70%), while Kogi (0.02%), Lagos and Ogun (0.52%) and Cross River (0.56%) recorded slowest rise on a month- on-month all item basis in May 2018.
In May 2018, food inflation on a year on year basis was highest in Yobe (15.86%), Kebbi (15.62%) and Jigawa (15.56%), while Kogi (8.54%), Benue (9.93%) and Akwa Ibom (11.13%) recorded the slowest rise in food inflation. 

On month-on-month basis however, May 2018 food inflation was highest in Taraba (2.80%), Adamawa (2.38%) and Enugu (2.36%), while Kogi, Oyo and Ekiti all recorded food price deflation or negative inflation (general decrease in the general price level of goods and services or a negative inflation rate) in May 2018.

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