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Nigeria’s inflation rate falls to 17.75% in June, third consecutive drop

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Nigeria’s inflation rate decreased to 17.75 percent in June, from 17.93 percent in May according to the ‘Consumer Price Index Report for June’, released by the National Bureau of Statistics (NBS) on Friday.

This is 0.18 percentage point lower than the rate reported in May 2021 (17.93%) implying that while prices continued to climb in June 2021, they did so at a somewhat slower rate than in May 2021.

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

Also, the June inflation marks three consecutive months (April, May, June) of a slower increase in the price of goods and services, however, it is still at 2017 levels.

Breakdown month-on-month basis shows the Headline index increased by 1.06 percent in June 2021. This is 0.05 percentage points higher than the rate recorded in May 2021 (1.01 percent).

The urban inflation rate increased by 18.35 percent (year-on-year) in June 2021 from 18.51 percent recorded in May 2021, while the rural inflation rate increased by 17.16 percent in June 2021 from 17.36 percent in May 2021.

Also, food inflation rate dropped to 21.83 percent in June 2021 compared to 22.28 percent in May 2021.

This implies that food prices continued to rise in June 2021 — but at a slightly slower rate than it did in May 2021.

Read also: Nigeria’s inflation jumps to 15.75%, highest in 36 months

According to NBS, the rise in the food index was driven 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.

On a month-on-month basis, the food sub-index increased by 1.11 percent in June 2021, up by 0.06 percent points from 1.05 percent recorded in May 2021.

Also, NBS noted that Core inflation, which excludes the prices of volatile agricultural produce stood at 13.09 percent in June 2021, down by 0.06 percent when compared with 13.15 percent recorded in May 2021.

On a month-on-month basis, the core sub-index increased by 0.81 percent in June 2021. This was down by 0.43 percent when compared with 1.24 percent recorded in May 2021.

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, 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 equipments.

Breakdown of states inflation

On states inflation rate In June 2021, all items inflation on year on year basis was highest in Kogi (23.78), Bauchi (20.67%) and Jigawa (19.81%), while Cross River (15.53%), Delta (15.18%) and Abuja (15.15%) recorded the slowest rise in headline Year on Year inflation.

On month on month basis however, June 2021 all items inflation was highest in Kano (2.22%), Akwa Ibom (1.98%) and Osun (1.92%), while Bauchi (0.00%) recorded no change in headline month on month with Abuja and Cross River recording price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).

In June 2021, food inflation on a year on year basis was highest in Kogi (30.34%), Enugu (25.18%) and Kwara (24.78%), while Bauchi (18.97%), River (18.92%) and Abuja (17.09%) recorded the slowest rise in year on year inflation.

On month on month basis however, June 2021 food inflation was highest in Jigawa (2.67%), Edo (2.43) and Cross River (2.16%), while Lagos (0.14%), Borno (0.06%) and Kwara (0.02% recorded the slowest rise in food inflation.

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