Nigeria’s National Bureau of Statistics (NBS) said on Wednesday that the nation’s inflation rate continues its upward movement as it rose by 12.40 per cent in May 2020.
The rate is 0.06 per cent higher than the 12.34 per cent recorded in April 2020, the highest in 23 months.
The Consumer Price Index (CPI), which measures inflation, released the NBS showed that price increases were recorded in all divisions that yielded the headline index.
According to the NBS, on month-on-month basis, the headline index increased by 1.17 per cent in May 2020, 0.15 per cent rate higher than the 1.02 per cent recorded in April 2020.
The percentage change in the average composite CPI for the twelve months period ending May 2020 over the average of the CPI for the previous twelve months period was 11.79 per cent, showing 0.08 per cent point from 11.71 per cent recorded in April 2020.
The report showed that the urban inflation rate increased by 13.03 per cent in May 2020, up from 13.01 per cent recorded in April 2020.
In the same vein, the rural inflation rate increased by 11.83 per cent in May 2020, from 11.73 per cent in April 2020.
Meanwhile, on a month-on-month basis, the urban index rose by 1.18 per cent in May 2020, up by 0.12 points from 1.06 per cent recorded in April 2020. Also, the rural index rose by 1.16 per cent in May 2020, up by 0.18 points from the 0.90 points recorded in April 2020.
The corresponding twelve-month year-on-year average percentage change for the urban index is 12.36 per cent in May 2020. This is higher than 12.26 per cent reported in April 2020, while the corresponding rural inflation rate in May 2020 is 11.26 per cent compared to 11.20 percent recorded in April 2020.
Analysis showed that the composite food index rose by 15.04 percent year on year in May 2020 compared to 15.03 percent in April 2020.
The NBS explained that ”this rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, Yam and other tubers, Oils and fats, Fruits, Fish and Meat.”
On month-on-month basis, the food sub-index increased by 1.42 per cent in May 2020, up by 0.24 per cent points from 1.18 per cent recorded in April 2020.
On the other hand, core inflation, which excludes the prices of volatile agricultural produce stood at 10.12 per cent in May 2020, up by 0.14 per cent when compared with 9.98 per cent recorded in April 2020.
On month-on-month basis, the core sub-index increased by 0.88 per cent in May 2020. This was down by 0.05 per cent when compared with 0.93 per cent recorded in April 2020.
”The highest increases were recorded in prices of pharmaceutical products, medical services, repair of furniture, hospital services, passenger transport by road, motor car, bicycles, maintenance and repair of personal transport equipment, passenger transport by sea and inland waterways, paramedical services, motorcycles and hairdressing salons and personal grooming establishment,” NBS stated.