Inflation rate drops by 0.19% to 17.93% in May — NBS

The National Bureau of Statistics (NBS) says the inflation rate reduced in May by 0.19 per cent to 17.93 per cent from 18.12 per cent recorded in April.

NBS in its “Consumer Price Index (CPI), May 2021” report on Tuesday added that CPI, which measures inflation, increased by 17.93 per cent (year-on-year) in May.

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

“On month-on-month basis, the headline index increased by 1.01 per cent in May, this is 0.04 percentage points higher than the rate recorded in April 2021 (0.97 per cent),” the NBS stated.

The report said the percentage change in the average composite CPI for the 12-month period ending May over the average of the CPI for the previous 12-month period was 15.50 per cent.

This, it said, showed 0.46 per cent point rise from 15.04 per cent recorded in April.

It also said the urban inflation rate increased by 18.51 per cent (year-on-year) in May from 18.68 per cent recorded in April.

According to the NBS, rural inflation rate increased by 17.36 per cent in May from 17.57 per cent in April.

It said on a month-on-month basis, the urban index rose by 1.04 per cent in May, up by 0.05 per cent compared to the 0.99 rate recorded in April, while the rural index rose by 0.98 per cent in May, up by 0.03 points compared to the 0.03 per cent that was recorded in April.

“The corresponding 12-month year-on-year average percentage change for the urban index is 16.09 per cent in May.

“This is higher than 15.63 per cent reported in April, while the corresponding rural inflation rate in May 2021 is 14.94 per cent compared to 14.48 per cent recorded in April,” said the report.

The NBS said composite food index rose by 22.28 per cent in May compared to 22.72 per cent in April, indicating a 0.44 per cent decrease.

It, however, said there were increases in the prices of bread, cereals, milk, cheese, eggs, fish, soft drinks, coffee, tea and cocoa, fruits, meat, oils and fats and vegetables.

It added that on month-on-month basis, the food sub-index increased by 1.05 per cent in May, up by 0.06 per cent from 0.99 per cent recorded in April.

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

“On month-on-month basis, the core sub-index increased by 1.24 per cent in May.

“This was up by 0.25 per cent when compared with 0.99 per cent recorded in April.

“The highest increases were recorded in prices of pharmaceutical products, garments, shoes and other footwear, hairdressing salons and personal grooming establishments,” said the report.

Others, according to the report, are motor cars, hospital services, fuels and lubricants for personal transport equipments, cleaning, repair and hire of clothing, furniture and furnishing, carpet and other floor covering.

Other services in respect of personal transport equipment, gas, household textile and non-durable household goods, were among those that recorded the highest increases.

For state profiles, the NBS said in May, all items inflation on year-on-year basis was highest in Kogi (25.13 per cent), Bauchi (23.02 per cent) and Sokoto (20.11 per cent).

Meanwhile Katsina (15.69 per cent), Imo (15.52 per cent) and Delta (14.85 per cent) recorded the slowest rise in headline Year-on-Year inflation.

On month-on-month basis, however, all items inflation in May was highest in Kogi (2.22 per cent), Ogun (2.17 per cent) and Cross River (2.07 per cent).

However, Ekiti at 0.02 per cent recorded the slowest rise in headline month-on-month with River and Sokoto recording price deflation or negative inflation.

For food inflation on a year-on-year basis, it was highest in Kogi (32.82 per cent), Kwara (26.02 per cent) and Enugu (25.43 per cent), while Akwa Ibom (20.06 per cent), Bauchi (18.65 per cent) and Abuja (16.91 per cent) recorded the slowest rise in year-on-year inflation.

On month-on-month basis, however, May food inflation was highest in Kogi (3.11 per cent), Ogun (2.89 per cent) and Anambra(2.37 per cent),while Edo, Sokoto and Ekiti recorded price deflation or negative inflation.